British Gas reports a 30% drop in profitability
While British Gas may have reported a 30% drop in profits to around £920 million in the second quarter of 2009 it was the indication that wholesale gas prices are heading south which has caught the eye of many consumers in the UK. Over the last few years, British Gas (part of the BG Group) has been one of the focal points of consumer discontent regarding the ever increasing cost of gas and other utilities. However, today's recognition that the recession has induced a significant fall in consumer demand appears set to filter through to wholesale and consumer gas prices.
While there was no suggestion of the size of any potential cuts in the short term, there is no doubt that utility bills across the UK will be falling in the short to medium term. This will please not only consumers and consumer groups but will effectively take some of the heat off the UK government. Despite various promises to rein in the increase in utility bills across the UK the UK government has been fairly inept in this area and relatively unsuccessful. The fact that a company the size of BG Group has announced plans to reduce the cost of gas and other utilities will almost certainly mean that others will follow suit.
Share this..
Related stories
Has the financial market lost the trust factor of consumers?
There have been significant changes in the UK financial sector over the last 18 months that have ultimately seen more and more consumers struggling to survive while taxpayer funding is used to bail out the banks. We've also seen a massive increase in the number of homes repossessed and debt collectors are becoming commonplace across the UK as banks look to call in monies due. So has the financial...
Read MoreDeloitte Forecast Property Slump Until 2010
Respected accountant Deloitte has plunged the property market into further chaos by suggesting that the ongoing slump in prices will last up until 2010 and see prices down one third from their recent highs. The move has scotched hopes of a sharp bounce in the sector given the recent takeover interest of late and hopes that more bids would follow.
However on the upside Deloitte feel...
Tax has gone up by 50% under Labour
A report by the Taxpayers Alliance has laid bare the economic prowess of Gordon Brown and shows that tax under the Labour government has increased by 50% since they were elected. The basic figures show that in 1997/98 when the government was elected the tax take was £293.8 billion but it has risen to a massive £517.1 billion for the 2007/08 tax year - a rise of more than 50% in 10 years!
...
Will we see a pre-general election boom?
As we draw closer to the next general election, which many predict will occur in mid-2010, a number of experts in the field of economics are suggesting we may well see a pre-general election boom orchestrated by the UK government. It is no surprise to see the UK authorities taking a more hands-on approach towards regulation, possibly to the demise of the Bank of England, although how they will use...
Read MoreWho will protect older workers in the UK?
As the recession continues to hit many areas of the UK business arena there are concerns that many older workers in the workforce could encounter a recession double whammy. Amid concerns that many older workers could be jettisoned as costs are cut and unemployment rises, there are fears they will be forced to take their pensions even though many pension funds have been decimated over the last 18 m...
Read More