The future of savings lies beyond the jaded state guarantee on deposits December 4, 2014 COINCIDING with a celebrity-laden advertising campaign to boost awareness, the Financial Services Compensation Scheme (FSCS) marked its thirteenth birthday this week. The scheme, which guarantees deposits in authorised banks and building societies of up to £85,000 per individual per institution, has also received official attention of late. The Bank of England, recognising the FSCS’s limitations, [...]
As the ECB “steps up” stimulus plans, will it do enough to prevent a Eurozone recession? December 4, 2014 Azad Zangana, European economist at Schroders, says Yes. The 2015 outlook for the Eurozone is precarious. Governments are continuing with austerity, while business surveys suggest a downturn is on the horizon. Markets are demanding the European Central Bank (ECB) adds QE to the measures already being used. Despite German resistance, president Mario Draghi has stated [...]
Autumn Statement 2014: George Osborne’s wizard wheezes don’t mask his total failure to eliminate the deficit December 3, 2014 I said that I would eliminate the budget deficit in this Parliament. I have failed to do so. It’s actually going to take me about 10 years rather than five. So, I’d be most grateful if you could re-elect me next May to let me finish the job at the snail’s pace I have now [...]
Autumn Statement 2014: Overdoing austerity would be self-defeating – don’t expect balanced budgets soon December 3, 2014 The chancellor issued his election manifesto yesterday, in the form of the Autumn Statement. And the good news for him is that the economic narrative is strong. GDP is now some 3.4 per cent above where it was before the crisis; we have been growing faster than any of our developed competitors. The Office for [...]
The chancellor’s balancing act has set the tone for tight fiscal restraint in the next Parliament December 3, 2014 DESPITE higher short-term borrowing, the chancellor presented an Autumn Statement in which the deficit is back on track over the medium term and a surplus is achieved by the end of the next Parliament. At the same time, he announced some selective tax reductions aimed at helping individuals and smaller businesses, while making commitments earlier [...]
Are Osborne’s reforms to stamp duty welcome news for the UK? December 3, 2014 Rory Meakin, research fellow at the TaxPayers’ Alliance, says Yes. Finally! Yesterday, the chancellor at last ditched the awful “slab” rate structure for stamp duty on homes. Higher rates now only apply to the amount over the tax’s thresholds, instead of the whole purchase price. Stamp duty starts at £125,000. If you bought a home [...]
Autumn Statement 2014: Forget a new fiscal rule – George Osborne should beef up the Office for Budget Responsibility to ensure real prudence December 2, 2014 George Osborne has made his name with a commitment to fiscal prudence, backed up by tough cuts to public services. In today’s Autumn Statement, he is expected to reinforce that reputation by announcing a formal target, backed by law, to eliminate the current structural deficit by 2017-18, a year earlier than previously forecast. There are [...]
The Ferguson riots: Economics and bias in the United States justice system December 2, 2014 THE RIOTS in Ferguson, Missouri continue to dominate headlines around the world. Even the brutal dictatorship of North Korea has got in on the act, accusing the United States of being a “human rights tundra”. The disturbances follow a grand jury decision not to indict a police officer for the fatal shooting of a black [...]
Gordon Brown made Britain stronger and fairer: He deserves recognition December 2, 2014 I FIRST joined Gordon Brown, who has just announced he is standing down as an MP at the next election, back in 1989. I left the Treasury to work for Labour in its new Economic Secretariat (consisting of me and one other), created by Gordon to increase the level of economic expertise Labour had. It [...]
As Aviva agrees a £5.6bn takeover of Friends Life, does the acquisition make strategic sense? December 2, 2014 Ben Cohen, an insurance analyst at Canaccord Genuity, says Yes. Aviva’s core strategy is “cash plus growth”, and this deal adds materially to cash flow, which will be used to pay a higher dividend and invest across the group for growth. This is not just jam tomorrow – the 30 per cent increase in Aviva’s [...]