UK government details loans under RBS insurance scheme
The UK government has today issued details of the Royal Bank of Scotland's participation in the asset protection scheme and there is some concern about the make-up of the loans in question. More than half of the £280 billion of loans in the scheme have been agreed with foreign entities, something which is causing concern within the UK government. In reality, the UK taxpayer is paying to ensure loans which were agreed with foreign entities.
The massive document which details the RBS participation in the scheme also confirms that the UK government has the power to "parachute in" experts if it believes that the loans in question are not being managed correctly. Nobody quite expected the amount of detail which has been published and indeed there will be some embarrassment to those involved in the loans in question.
The Royal Bank of Scotland's entry to the scheme is funded by the UK taxpayer and will see the government's share stake in the business increase from 70% to 84%. It is also believed that the UK government has obtained the authority to block any staff bonus payments from Royal Bank of Scotland although whether this particular power will be used in the short to medium term is open to debate.
UK utilities under pressure after Severn Trent shocks market
UK water utility company Severn Trent has today shocked the market with the announcement that falling commercial consumption will see revenues up to £25 million lower compared to last year, even though the company recently forecast a decline of just £15 million. This announcement has spooked investors and spooked the market at a time when utilities were seen by many as a safe haven in these stor...Read More
Uninsured driver claims starting to fall
For many years the problem of uninsured drivers in the UK has been a significant problem for the car insurance market. The Motor Insurers Bureau, which effectively looks after situations where uninsured drivers are involved in accidents, will this year take a £407 million levy from car insurance premiums, down from the £417 million figure last year. However, this is still a significant amount of...Read More
Is the Bovis Homes and Barclays tie-up the way ahead?
Yesterday's announcement that housebuilder Bovis Homes has agreed a joint venture with Barclays which will see home buyers guaranteed a mortgage of up to 90% has set tongues wagging in the housebuilding arena. So is this the way ahead for the UK housebuilding sector? The structure of the deal between Bovis Homes and Barclays is such that Bovis Homes will put aside an agreed percentage of any pr...Read More
Why Are Consumers Not Making Use Of The Citizens Advice Bureau?
As the economy continues to head south, financial worries rise to the surface and more people than ever face the threat of financial ruin, why are consumers not making use of the Citizens Advice Bureau (CAB)?
The CAB has been around for many years and is fully funded by the authorities with all advice both confidential and free. It seems that more and more people are waiting until...
Has the UK government sounded the death knell of final salary pension schemes?
The future of final salary pension schemes in the UK is today under threat amid confirmation that the UK government will significantly reduce the amount of pension funding allowable under tax relief regulations. While this will hit the higher echelons of the UK business arena many believe that it is effectively a sounding bell for the last rites of final salary pension schemes in the private secto...Read More