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.
Is immigration affecting job prospects in the UK?
While immigration is a very difficult subject to discuss it is one which has been brought up by the Labour Party in the context of British jobs for British workers, something we have heard of before but never seen any action. The reason why there has been no action is pure and simple, it is against the EU's open door policy which lets EU citizens move around Europe with the same rights as they ha...Read More
Will Japan lead the worldwide economy to the promised land?
While all eyes have been on the US economy over the last few months, with an assumption that it would be the US economy which would bring the worldwide economy out of recession, perhaps the Japanese recovery will be the catalyst for improvements around the world?
It has been revealed that economic growth of 0.9% was seen in the second quarter of 2009 in Japan when compared to the fi...
Budget Headlines : Capital allowance for business increased to 40%
Capital allowance for business increased to 40%...Read More
Worst of credit crunch 'still to come', CFOs say
The worst of the credit crunch has yet to be experienced, business bosses have suggested.Deloitte recently polled 83 chief financial officers (CFOs) from top-350 companies in the UK - and found that 66 per cent disagreed with US treasury secretary Henry Paulson's recent statement that the most pronounced effects of the crisis had already been passed.In addition, nine in ten of the CFOs said that t...Read More
What to do if…I have overspent this Christmas
30/12/2015 Did you know that the average family spends over £800 at Christmas time? Now that the presents have been opened and the mince pies have been eaten, you may be too scared to take a look at your bank balance. Don’t worry too much, if you feel like you have overspent this Christmas, we are here to help. It’s easily done, but there are some steps you can take to make getting thro...Read More