UK government to challenge EU over insurance rules
The UK government is set to challenge the EU commission head-on with regards to solvency II rules which are set to be introduced to the European marketplace in the short term. The UK government believes that these "over conservative" solvency rules will see UK insurance companies having to shore up their reserves by up to £50 billion. There will obviously be a cost to this additional reserve requirement, something which is likely to be met by customers.
The UK has one of the most competitive insurance markets in Europe and yet again many people are pointing the finger at the EU commission, which is determined to crack the UK financial markets and bring them under the regulatory control of the European Union. In effect this has already happened with the various treaties signed by European member states but the UK government is set to tackle this particular issue head-on as it will have a detrimental effect on the UK insurance sector, pensioners and future rates of investment return.
The issue of increasing reserve capital is a direct consequence of the credit crunch which saw a number of "solid assets" collapse like a pack of cards once the financial system began to seize up.
Is VAT set to rise in the New Year?
Alistair Darling has been very vocal over the last few days with regards to VAT and the increase from 15% to the former level of 17.5%. Despite a number of government cabinet members suggesting that the return to 17.5% could be delayed until after the New Year it appears that Alistair Darling is set to get his own way and consumers and businesses are to be hit in New Year.
Is it helpful to cut employment numbers to save costs in the short term?
Over the last few weeks we have focused on the UK economy and in particular the ever-growing number of unemployed in the UK. Company after company have been announcing job losses and cost cuts to try and stabilise their businesses in the short to medium term and reduce their costs as much as possible. However, is there a danger that cost-cutting in the short term could lead to reduced consumer exp...Read More
The Age Of Cheap Flights Is Over
Under pressure chief executive of British Airways, Willie Walsh has sounded the end of the golden age of cheap air travel and predicts that many of the budget airlines will struggle over the coming years. The mass of £1 special travel offers have gone, we are even seeing the budget airlines increase prices and an array of extra charges are expected in due course.
If there is one c...
LIBOR Rate Hit Three Month High
It seems as though speculation that the next interest rate move in the UK will be higher is starting to feed through to the money markets. LIBOR, which is the rate at which banks lend money to each other, hit a three month high of 5.95% today as many dealers reluctantly agreed that UK interest rates are set to rise in the short term. So how does this affect the markets?
Complaints to water companies fall
17/10/2014 Complaints to water companies have largely fallen for their sixth year in a row, according to the water bill watchdog, Consumer Council for Water (CCWater). The number of written complaints made by customers to water companies in England and Wales fell during 2013/14 by 18 per cent – more than twice the rate of decline seen the previous year. This means written complaints are no...Read More