Our at-a-glance guide to Osborne’s mini-budget December 5, 2013 Growth up, borrowing down, yet the debt is still rising. Another raid on the banks, but shops to gain from reduced business rates THE UK ECONOMIC OUTLOOK● The Office for Budget Responsibility (OBR) has revised up its forecast for economic growth and revised down its prediction for inflation. It expects unemployment to drop quickly next [...]
Plan A has worked but it hasn’t avoided disaster December 5, 2013 ACCOMPANYING the Autumn Statement, the Office for Budget Responsibility (OBR) upgraded expected growth for 2013 to 1.4 per cent and for 2014 to 2.4 per cent, while the deficit in 2013-14 has returned to falling for the first time since 2010-11. George Osborne says this showed Plan A worked. Is he right? Yes and no. [...]
What does the chancellor’s budget mean for you? December 5, 2013 Catherine Gannon, 51Managing director of law firm GannonThe business is performing extremely well but that is thanks to investments: profits are up but the cost of living has increased, making Catherine feel less well off. She lives with two children, aged 11 and 13, in her own home and holds investment properties. She doesn’t have [...]
Reactions to the chancellor’s statement December 5, 2013 THE BUSINESS GROUPDirector general of the CBIJohn Cridland The CBI had lobbied the government to cap business rates at two per cent and support business finance. “We have always advocated the dual approach of tackling the deficit and driving growth – the OBR forecasts confirm it is working. Let’s stick with what works. “The pressure [...]
Why critics of banks on SME lending could be grossly missing the point December 4, 2013 THE GLASS is too often half empty in the great debate on bank lending to small and medium-sized enterprises (SMEs). But are some of the loudest voices not seeing the full picture? It’s hardly difficult to find critics suggesting that SMEs have little chance of securing a bank loan. So you may be surprised that [...]
It’s time to end the cruel delusion of cheap money and reckless spending | City A.M. December 4, 2013 GEORGE Osborne will present his Autumn Statement to a country in the grip of a cruel economic delusion, perpetrated against the poor and the aspirational. Welfare states everywhere are spending chronically beyond their means while papering over the cracks with easy money. Budget 2013 forecast spending in excess of receipts of about £9bn a month. [...]
Europe hands out hefty fines to global banks December 3, 2013 THE EUROPEAN Commission is set to impose heavy fines on a number of global banks including Citigroup, Deutsche Bank and RBS later this morning, over allegations that they rigged key interest rate benchmarks. The fines could break European antitrust enforcement records and run to several hundred million euros each, based on the level of involvement [...]
Bank fears debt too high to cope with a rate hike December 3, 2013 HIGH house prices are pushing up families’ debts and mean they could be in danger when interest rates rise, the Bank of England said yesterday. The minutes of its financial policy committee’s (FPC) latest meeting show the panel of policymakers is worried that further sharp rises in prices will build up risks in banks and [...]
Autumn Statement: How it may affect your finances December 3, 2013 With interest rates already at record lows, the chancellor may have more bad news in store for savers Coverage of the chancellor’s Autumn Statement tomorrow will no doubt focus on the predictable headline-grabbers – fuel duty freezes, corporation tax changes, and heavily-trailed action on energy bills are all candidates. But for savers and investors, some [...]
Expansion in UK construction is strongest in over six years – but where are the homes? December 3, 2013 As the Bank of England pulls away the Funding for Lending Scheme (FLS) mortgage incentives the UK's construction sector has seen a huge beat. Markit's purchasing managers' index (PMI) for the sector rose from 59.4 to a staggering 62.6 in November. Analysts had expected a fall to 59.0. That's the highest level since August 2007. [...]