Bank of England calls for more power
A report by the Bank of England has highlighted the fact that the interest rate loan will not save the UK economy in the short to medium term and indeed will need to be complemented by other powers in the longer term. A review of the UK economy over the last decade has shown that the Bank of England would have had to push UK base rates to between 6% and 19% to control what was at the time an uncontrollable surge in property-based lending in the UK. So what extra powers will the Bank of England require?
At a time when the Conservative party is looking to give the Bank of England more power, if it is successful at the next general election, the Bank of England believes a series of surcharges are required to control excessive lending from UK banking institutions. The surcharges would be triggered in the event of periods of excessive lending and would effectively reduce the financial strength and lending capabilities of the UK banking sector as a whole. This would then allow the authorities to gain more control over the flow of finance in the UK and hopefully avoid the lending bubbles we have seen over the last 10 years.
Sounds simple, but is it really that easy?
Share this..
Related stories
The Christmas Countdown
02/12/2103 The Christmas countdown has begun. Advent calendars have been opened, Christmas songs will be heard playing everywhere and slowly but surely everyone begins to dig out and put up their Christmas decorations in preparation for the big day. Christmas comes around so quickly each year yet so many seem so unprepared for the financial stress it can cause. It probably seemed like only...
Read MoreGordon Brown strikes up a double act with French president Sarkozy
Gordon Brown will this week meet Nicholas Sarkozy to discuss the ongoing economic downturn and ways in which the worldwide economy can be stimulated. The two leaders have become fairly close over the last few months and struck up something of a double act which has surprised many people. The French president seems very much in awe of Gordon Brown's economic prowess and his innovative ways to comba...
Read MoreBusiness leaders question UK government's broadband tax
UK business leaders have today questioned the UK government's suggestion that a six pound telephone line tax should be brought in by the end of 2010, with the aim of party funding the investment required for a new UK national broadband network. However, in a move which will surprise many people, business leaders do not believe six pound per telephone line would be enough to raise the funds require...
Read MoreUK government cracks down on business tax credits
The UK government has been accused of being overzealous in its pursuit of companies claiming research and development tax credits. HM Revenue and Customs (HMRC) has admitted that officers have been assigned to review thousands of cases of research and development tax credits being claimed by small, medium and large companies in the UK.
Despite the fact that the reduction of any clai...
More needed to get the economy moving
Prime Minister David Cameron has recently made claims that the UK is in a better financial position than it was back in 1930. He denied claims that the slump witnessed over 80 years ago was similar to that of now. He said: "We are obviously facing in Europe a difficult set of circumstances that is harming our growth and our prospects and its going to take time to fix. Frankly, Britain needs to...
Read More