Is inflation a threat to the UK recovery?
This week sees a number of vital economic statistics in the UK with concerns that the rate of inflation is set to spike upwards in the early part of 2010. Recent figures have shown an increase in the cost of raw materials, much of which came from the upward movement in the price of oil, which will have an impact upon inflation. So what else do we need to monitor in the short term?
There is also concern that the government's refusal to maintain VAT at 15%, and instead return it to 17.5%, will also place further upward pressure on the cost of living in the UK. In what is becoming a more difficult scenario by the day, the Bank of England is also under pressure because of the strategy regarding UK base rates which have remained at 0.5% for some time. If inflation does begin to take off, and the Bank of England does not respond quickly enough, we could move towards a situation where the rate of inflation spirals out of control and we need to see a significant increase in base rates in a very short space of time.
The ability to increase base rates and make borrowing more expensive is a very basic tool in the economic UK government's toolbox but one which has proven very effective over the years.
UK car parts manufacturer files for bankruptcy
In a sign of the times it has been confirmed that the UK subsidiary of Visteon Corporation, which was formerly part of the Ford group, has today filed for bankruptcy with the potential loss of 600 jobs in the UK. The business has three car plants in Basildon, Belfast and Enfield making a range of components for the car industry. However, business has been bleak of late and the owners have today ta...Read More
How much has the UK recession cost us?
While it is very difficult to comprehend the billions upon billions of pounds being mentioned in budgets, national debt and other discussions, how much has the UK recession cost UK taxpayers?
One way to look at this particular subject is to look at government debt and how this is financed. To give an example of where we are at the moment, it will cost the UK government a massive £2...
Consumer confidence takes a battering
Despite the fact that it appears as though the UK economy is at least moving in the right direction, consumer confidence fell by four points to -17 in November according to the GfK NOP. While this is a marked improvement on the -35 figure last year it is still disappointing to see a downturn in consumer confidence in the short term at least. One of the main problems which consumers in the UK ha...Read More
LDV vans on the brink of administration
It has been revealed this evening that the future of LDV vans is literally hanging by a thread after a much vaunted management buyout apparently collapsed last night. The company has repeatedly asked the UK government for up to £5 million in bridging loans and has repeatedly been refused access to further funding despite the fact it employs a significant number of people in the UK. So what next?<...Read More
Lloyds bank in talks to sell Scottish private client broker
Lloyds bank is rumoured to be in talks with Rathbone Brothers regarding a disposal of the company's Scottish private client fund management division. Originally the Bank of Scotland portfolio management service, this division is now a non-core asset of the business and with cash now king for Lloyds bank it seems that now is the time to dispose of the operation.
Those close to the ta...