Treasury Select Committee tells fiscal watchdog to start working on improvements after £11.5bn VAT forecast blunder. December 8, 2015 A group of influential MPs has today told the government’s fiscal watchdog to come up with ways to improve its models after some tweaks in its latest forecast granted Chancellor George Osborne and extra £11.5bn to spend over the next five years. Nearly every economist expected the Office for Budget Responsibilty (OBR) to reduce the amount [...]
UK house prices: Mortgage rates hit record low as more people opt for fixed rate deals December 8, 2015 Mortgage rates dropped to their lowest on record between July and September, according to figures released by the Bank of England this morning. The overall average interest rate on mortgage advances dropped to 2.76 per cent, from 2.83 per cent. The proportion of new mortgages that are fixed-rate climbed to 80.7 per cent from 78.9 [...]
UK industrial production beats expectations in October but manufacturing still drags December 8, 2015 UK industrial production grew 1.7 per cent in the year to October, beating economists' forecasts for 1.2 per cent growth, and painting a positive picture for the sector, new data from the Office for National Statistics shows. Mining and quarrying rose 8.5 per cent, followed by water supply, sewerage and waste management output, which rose four per [...]
House price growth dips as UK housing value increases by £1.8 trillion in 10 years December 8, 2015 The value of the UK's housing stock has jumped by £1.8 trillion in the past decade, research by Halifax showed today. UK homes are now worth £5.1 trillion, a 53 per cent jump from £3.3 trillion in 2005. That's a £76,316 rise for each home in the UK. The news came as Halifax reported annual house price [...]
London economic growth will outstrip New York by 2030 December 8, 2015 London's economy is expected to grow more quickly than New York's over the next 15 years, helped by its ability to benefit from international growth. The capital's economy will grow by an average of 2.9 per cent a year between now and 2030, outpacing New York's 2.6 per cent, according to the report by consultancy [...]
New year, new employees, as London’s hiring intentions place above the national average, although the capital is outpaced by the Northern Powerhouse December 8, 2015 London can expect a jobs boom in early 2016, with employer’s hiring intentions higher than those of the national average. A report out today by Manpower, based on responses from 2,102 UK employers, has found that London’s seasonally adjusted employment outlook is nine per cent, which is the net proportion of employers in the region [...]
Brent crude oil prices near seven-year low after Opec decision December 7, 2015 Oil prices have hit lows not seen since the beginning of the financial crisis and the collapse of Lehman Brothers, due to concerns the supply glut will continue into 2016. Brent crude was trading at $40.71 per barrel at the time of print, while the US benchmark West Texas Intermediate (WTI) dipped to lows of [...]
Uber warns EU regulations are holding back Europe’s tech startups December 7, 2015 Cab hailing app Uber has warned European Union (EU) regulation could mean that technology startups from Europe are unable to compete internationally. Uber’s head of public policy in Europe Mark McGann slammed the EU digital single market and said: “I’m concerned about domestic companies in the UK and across Europe not being able to make [...]
Tyrie pushes for changes to inheritance tax relief reforms December 7, 2015 Proposals to extend inheritance tax relief for residential properties brought in by George Osborne this year have been criticised for being too complex. Andrew Tyrie, chairman of the Treasury Select Committee, has written to the chancellor asking him to rethink the proposals. He has suggested using the 2016 Finance Bill to clarify the changes, the first [...]
Euler Hermes: Brexit could knock £30bn off export sales by 2020 December 7, 2015 The cost of a Brexit on exports could hit £30bn if the UK decides to leave the EU without a new free trade agreement (FTA), according to new research released yesterday. The report from credit insurance giant Euler Hermes said Brexit without an FTA would cause a sharp contraction in the UK economy, with total [...]