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.
Where did all the money go?
As the UK economy continues to bump along in recession many people are now wondering where the billions upon billions of pounds of taxpayer's money has all gone. We have seen a quantitative easing investment programme in the billions, we have seen VAT reduced, we have seen the UK government take a large stakes in UK banks and investment programmes continue up and down the country. However, if the...Read More
EU Gender Directive: will Women pay more?
From 21 December 2012 insurers will no longer be able to use gender as a contributing factor when calculating insurance premiums. Typically, women have had access to cheaper premiums for policies such as life and car insurance, because they are considered to be lower risk. However a ruling from the European Union recently has banned insurers from using gender as a factor when calculating premiu...Read More
International Air Transport Association fears for the future
The International Air Transport Association has today confirmed that the worldwide airline industry lost a staggering $6 billion in the first six months of 2009 which leaves the association's original forecast of a $9 billion loss for the year in tatters. A mixture of reduced business levels and increased costs has squeezed many airlines from both sides and cash flow is now a major problem in many...Read More
Black Friday comes to the UK
27/11/2014 Tomorrow, UK retailers will be slashing their prices by up to 70% as thousands of shoppers are expected to descend on the UKs high street. The American shopping day, Black Friday, has officially come to England as stores including Asda, Tesco, John Lewis and Sainsburys will all offer one day discounts to entice shoppers in the run up to Christmas. These offers are usually on elec...Read More
The FSA looks to revamp complaints procedure
While the FSA (Financial Services Authority) continues to receive record complaints with regards to the UK financial sector, we could see a significant change in the presentation of statistics in the future. The FSA has announced plans which would see companies attracting more than 500 complaints per six months being forced to issue further details about these complaints, specifically how many wer...Read More