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.
British Sport Subject to ‘Invisible Tax’
It has been revealed that most British community sport is subject to 20pc tax, after an effort against HMRC was stepped up over their plans to levy VAT on 5-a-side football. Although it is possible for some organisations to avoid tax, it is believed that many of us who use gym’s or send children to after school sports classes, pay tax that is never apparent to us. Tom Kivlehan, VAT expert at...Read More
Scottish leaders ignore collapse of Flyglobespan
Despite the fact that Scottish Parliament leader Alex Salmond has been championing all causes Scottish over the last few months, neither Mr Salmond or his political opponents took any time out in yesterday's Parliamentary questions session to discuss the issue of Flyglobespan. This reflects very badly on the Scottish parliament which is to all intents and purposes an arena to discuss all things Sc...Read More
Men in more debt than women
Men who seek help with managing their finances tend to have as much as 20 per cent more debt than their female counterparts, the debt management company Chiltern has said.According to Chiltern, men are also able to afford to repay less to their creditors each month than women and take an average of 22 months longer than women to become debt free, even though they earn more money on average. Joanne...Read More
Gordon Brown pleads for optimism from the UK public
At the World Economic Forum in Davos, Gordon Brown has today pleaded for the UK population to remain optimistic about the future of the UK economy. However, many of the UK population are finding it very difficult to look ahead with optimism with the worsening economic situation, the increasing number of repossessions and unemployment forecast to reach 3 million. So what have we really got to be op...Read More
UK recession was the deepest since 1921
It has been revealed that the UK recession, which many believe ended in the final quarter of 2009, was the deepest and the hardest hitting since 1921. While it would be unfair to suggest that no other economies around the world have suffered to the same degree as the UK economy, there is no doubt that the UK is one of the slowest economies to recover. This has been a wake-up call to many who ro...Read More