Royal Bank of Scotland joins UK asset protection scheme
Despite attempting to wriggle off the hook, which is the UK government's asset protection scheme, the Royal Bank of Scotland has been forced to sign up and confirmed that this happened on 26 November. While there's no doubt that the scheme will protect the company's assets in the short to medium term, like Lloyds bank, the company had been attempting to negotiate an exit rather than pay the multibillion pound premium.
In a bizarre quake of fate, if the UK economy does take a further downturn, as some people believe it will in 2010, the scheme will become vital for Royal Bank of Scotland and Lloyds bank may well have made a mistake negotiating its own exit. The agreement which was signed by Royal Bank of Scotland is conditional upon approval by Royal Bank of Scotland shareholders and overall approval by the European commission which is now heavily involved in the UK banking sector and the restructuring of businesses such as Lloyds bank and Royal Bank of Scotland.
Now that the saga surrounding the asset protection scheme looks to be over there are hopes that the Royal Bank of Scotland management can look ahead to the future even though markets are still very difficult. This is a company which was the largest banking operation in the world at one stage, after a massive expansion programme, but has now come back down to earth with a bump and will need to rebuild from a very low base.
Sainsbury warns of realities of recession
Justin King, the chief executive of Sainsbury, has today warned the UK population that Britain is "yet to face the realities of recession". Despite the fact that the UK market sector appears to be faring better than most in the UK economy he believes that the full extent of the UK recession has yet to be realised by the UK population. While there is no doubt that money is still tight in many ar...Read More
Rate rise hint from BoE deputy governor
The deputy governor of the Bank of England (BoE) has said he voted in favour of a rate rise earlier this month because he was "not convinced" current rates were sufficient for long-term sustainability among certain variables.In a speech at the University of Surrey, John Gieve said not acting on instability was a bigger issue than bringing about a slowdown.Mr Gieve said he voted for the rate rise e...Read More
Council tax set to rise to plug pension fund shortfall
It has been revealed via a Freedom of information request that 83 of the 87 local government pension schemes in operation in the UK were in deficit in 2007. When you consider that the financial situation has changed for the worse since 2007, we can only assume that the deficit problem has worsened over the last two years. So who will pay the price? The Liberal Democrat Shadow Work and Pensions...Read More
The gap between public and private sector pay continues to widen
In a damning indictment of the ever-growing size of the U.K.'s public sector it has been revealed that on average workers in the public sector are paid £2,000 a year more than their counterparts in the private sector. The average public sector worker now brings in around £23,660 year compared to £21,528 year for those in the private sector. This is the first time that the gap between the two se...Read More
Scottish economy on a knife edge
Despite the fact that the Scottish economy, like others in the UK, exited the recession in the final quarter of 2009 there is no doubt that the economy is struggling. Ahead of what could be significant public-sector spending cuts, and significant job losses in this area, there has been a sustained reduction in business confidence and consumer confidence. When you also take into account the fact...Read More