The section of society purchasing new cars rose by 1.8% in 2010 according to industry reports and data.
The Society of Motor Manufacturers and Traders (SMMT) reported that there were 2,030,846 new registrations in the year which is a rise of 35,847.
There was a rise in demand for fleet vehicles of more than 10% but the same data showed that there was a decrease in private purchases which is linked to the end of the scrappage scheme.
The UK government has borrowed an additional £10.8 bn in October 2010. This is the largest amount borrowed in the month of October and an increase from £10.1 bn in October 2009.
Whilst these are large amounts the figures do generally represent the earlier estimates from economists.
This latest loan totals £83.8 bn in borrowing by the UK government for this financial year and this increase has come about despite an increase in the Treasury's tax take.
Recent months have seen many announcements of financial woes to impact on the United Kingdom's emergency services. Government spending cuts are bringing about drastic changes in personnel numbers and spending by service leaders and authorities.
It is estimated that 3,200 Police officers could be axed if the current stand of introducing compulsory retirement continues. This is in the wake of Police forces being told to save money on large scales. For example, Chief Constable of Kent, Ian Learmonth has expressed fears of rising crime should he be forced to go ahead with cuts of 20% or more.
The Chinese authorities yesterday increased base rates with one-year deposit rates now standing at 2.5% and one-year lending rates at 5.56%. It would appear that the Chinese authorities are concerned about the short to medium term direction of inflation which has been higher than the authority's 3% target for some time now. Indeed the government is encouraging savers to retain their funds in the bank and not feed the consumer frenzy which has pushed inflation to the current level.
Minutes from the last MPC meeting have indicated a three-way split between members with the vast majority voting in favour of no change, one member voting for a rise in interest rates and one member voting for a reintroduction of quantitative easing. This perfectly illustrates the very difficult situation which the Bank of England and the MPC face with the UK economy which is as difficult to predict as it ever has been.
As we stand on the verge of the largest reduction in the UK public sector spending in living history, the UK government is still adamant it has no choice but to rein in spending by around £80 billion over the next four years. The government has always remained firm in its belief that unless spending cuts were introduced in the short term then the UK sovereign credit rating would be under pressure and ultimately the UK government would find it difficult to raise finance in international money markets. However, even after these austerity measures is the UK sovereign credit rating safe?
Danny Alexander, the Chief Secretary to the Treasury, has given opposition parties and the financial press something of a bonanza today having been photographed reading a draft copy of the comprehensive spending review. Sharp eyed photographers noticed that a figure of around 490,000 had been penned into the report citing the potential number of job losses in the public sector. This has caused disarray within the government and anger within the trade union movement.
Sterling today fell against a basket of currencies amid concerns that factory order output was weakening and the economic outlook in the short to medium term is difficult to say the least. When you also take into account the spending review which the UK government will announce this week there is no shortage of negative comment in the markets in relation to the UK economy.
Mervyn King, the governor of the Bank of England, has this evening played down the threat of inflation in the UK suggesting that inflation is just as likely to under shoot its target as to overshoot. This is the first major speech from Mervyn King since August and would appear to suggest, just prior to the issue of October MPC minutes, that there is some debate within the committee as to the direction of the UK economy.
It will be no surprise to hear that around two thirds of business leaders in the UK believe that strike activity in the short to medium term will severely impact upon the ability of the UK economy to recover. This is the first time that business leaders have spoken out en masse regarding strike activity as the unions continue to flex their muscles and take on the UK government. So will strike activity really have a major impact upon economic productivity in the UK?
