Osborne hit by drops in credit and factory stats October 1, 2012 HOPES for a growing recovery in the UK economy were dented yesterday by two data releases that exposed weak lending rates and another contraction in the country’s manufacturing sector. Consumer credit and mortgage lending both unexpectedly sank in August, according to figures from the Bank of England, dipping by £134m and £276m respectively. Total lending [...]
A strange kind of green shoots: Welcome to the New Normal October 1, 2012 GREEN shoots in the economy are a bit like beauty: they are in the eye of the beholder. Such is the confused, contradictory state of the British economy that one can just as easily be bullish or bearish, depending on which facts one chooses to pick out. For every piece of good news, one can [...]
London Barometer September 27, 2012 The sales market is now chronically undersupplied with 30 per cent fewer properties available and 30 per cent more offers agreed than August last year, confirming that demand for property in the capital is continuing. With mortgage rates at a record low and a growing number of buyers, if you were looking to sell your [...]
After more banks signed up to Funding for Lending, is it likely to help UK business? September 25, 2012 YES Corin Taylor Funding for Lending – the scheme run by the Bank of England which seeks to stimulate the economy by making cheaper loans available to firms and individuals – is fine as far as it goes. But we must be sure not to overstate its likely benefits. Those companies that would already qualify [...]
Britain needs more venture capitalism – not a state bank September 25, 2012 HERE is a simple question. What do you think would do more to help the provision of finance for small firms? Vince Cable’s new state bank, which will begin its operations in 18 months’ time, or a radically improved tax system to improve the provision of equity financing and venture capital? In other words, is [...]
Frustrating UK tax quirks can easily mean missed mortgage payments September 24, 2012 WHEN HMRC wrongly changed my tax code last October, I was paying 40 per cent of my total income as tax for six months. It had a huge impact on my finances – my take home pay went below my mortgage costs. And HMRC couldn’t correct it, despite admitting its error. In the end I [...]
FF&P Private Equity backs manager buyout September 23, 2012 FLEMING Family & Partners’ private equity arm yesterday announced it had stumped up £8m to take a majority stake in the management buyout of rental furniture provider David Phillips Furniture. FF&P Private Equity has put up the money to back the deal, which will see current management reinvest in the firm. FF&P PE said the [...]
We will soon find out whether America’s recovery is real September 23, 2012 FEDERAL Reserve chief Ben Bernanke took aim at the housing market this month, saying it was one missing piston in the economic engine. The Case-Shiller Home Price Index tomorrow will be the economic equivalent of a peek under the US bonnet at the start of the third quarter, with some wondering if the hum of [...]
Lloyds first bank to use cheap funds from state programme September 19, 2012 LLOYDS became the first bank to use the government’s new Funding for Lending scheme (FLS) yesterday, drawing down £1bn from the Bank of England. It pledged to lend the money on to businesses and households. However analysts said they do not expect Lloyds’ overall lending to rise, as the bank is still rebalancing in the [...]
Gove’s reforms will help better equip young people for life September 18, 2012 BRITAIN’S poor educational standards are a national scandal and a key reason why the UK’s productivity continues to lag. The problem is not with graduates of our top universities, though even they could do better. The real crisis is that thousands of school leavers and even, in some cases, graduates from other universities, end up [...]