Banks are part of the solution: They’re the lifeblood of UK economic growth November 21, 2012 WHEN it comes to the economy, banks are usually seen as the problem – as the ones that got us in this mess. But banks are also part of the solution. It is not just that financial services is a major sector of the economy – one of the few sectors where the UK is [...]
Why I still support Abramovich’s rule at thriving Chelsea November 21, 2012 ROMAN Abramovich’s decision to dismiss Roberto di Matteo, barely six months after his coach won him the European Champions’ League for the first time in Chelsea’s history, has been roundly criticised by many who follow football. Commentators deplore the oligarch’s inability to settle on a manager and give his club stability. Di Matteo is the [...]
Will HP’s allegations against Autonomy damage the reputation of UK start-ups? November 21, 2012 YES Mike Franklin This case is hugely embarrassing. Although the former management of Autonomy has completely denied these allegations, the fallout could still be enormous. The seriousness is underscored by the fact that HP reported the case to the US Securities and Exchange Committee and the UK’s Serious Fraud Office. A deal on this scale [...]
Rapid responses November 21, 2012 The cost of saving [Re: Fresh allegations overshadow welcome cultural shift in the City, yesterday] As a higher rate tax payer I benefited enormously from the 40 per cent tax relief on my pension contribution. But I was struck by the discrepancy between my position and that of my wife. As a lower rate taxpayer, [...]
Lesson from Australia: Retirement benefits don’t have to bankrupt us November 20, 2012 WHEN The Who’s Roger Daltrey first sang “I hope I die before I get old,” he was probably not planning on receiving the winter fuel allowance. Yet 47 years later, at some stage this month a £200 cheque from the UK taxpayer will drop through his letterbox. Daltrey is one of a growing number of [...]
Cheating students hold the key to better government decision-making November 20, 2012 WHAT is the connection between executive pay, petty crime, and plagiarism by students? Economics can help us with the solution. It all links back to the concept of externalities. To illustrate the idea, economists use the example of a factory, which imposes costs on others through pollution. But Thomas Schelling, a Nobel Prize winner, extended [...]
Should the government consider lowering the level of tax relief on private pensions? November 20, 2012 YES Vidhya Alakeson Britain could raise up to £1.5bn by limiting tax relief on the very largest personal pensions – those built on lifetime savings of more than £1m. This would affect only very wealthy savers and seems necessary in these straitened times, when deep welfare cuts are underway. The money saved from pension tax [...]
Rapid responses November 20, 2012 Practical pensions [Re: The Ostrich Generation, yesterday] I imagine that one of the main reasons young people are not placing much faith in the future of their pensions is their lack of confidence and certainty about the future more generally. If someone is in their mid-20s, three or four decades is a long way ahead. [...]
Investors should expect a perfect storm of global political instability November 19, 2012 VIOLENCE in Israel and Gaza may seem to be a solely political (or geopolitical) issue. But politics has implications for all investments, and particularly sovereign debt. Governments drive policy and policy drives the bond markets. Instability used to be more of an issue for emerging markets. But we are now entering a new age of [...]
The poor are growing richer – and it’s nothing to do with redistribution November 19, 2012 IT’S fashionable to suggest that economic reform under Margaret Thatcher exposed us to a form of capitalism where “the rich have got richer and the poor have got poorer”. We’re told this has led to increasing inequality, which has damaged our economic and social fabric and that only redistributive policies – in the form of [...]