Is an ageing population the major threat to the UK economy?
Over the last few days the headlines regarding the UK economy have been fairly negative with an expected impact from the problems within the euro zone. However, more and more analysts and economic advisers are suggesting that the ever ageing UK population is the one major threat to the prosperity of the country in the medium to longer term. So how can this be?
The problem with an ageing population is that medical costs, pension costs and other benefit costs will balloon in the future. Despite the fact that more and more people are working beyond their retirement age this is something of a double edge sword because it does effectively reduce employment opportunities for those leaving school and further education. When you also consider the enormous pension funding problem within the UK, with the state pension under pressure and the final salary pension scheme in its last throes of life in the private sector, there really are some major issues to consider in the long term.
One problem which any government will have here is that voters want to see action now and planning for the future may well include short-term pain which will not be appreciated in the run-up to the general election. However, no matter how difficult the short-term situation may become we need to look at the longer term as significant funding shortfalls become more and more apparent.
Do we need a reorganisation of HM Revenue and Customs?
As the taxation debacle in the UK continues to grow legs and arms amid signs there may be more issues behind the scenes, a number of prominent experts in the taxation fields are now concerned about the reputation of HM Revenue and Customs. Despite the fact that billions of pounds of taxpayer's money had been invested in various computer systems over the last decade it seems that we are no better o...Read More
Prudential close to agreement with FSA
It is believed that the Prudential is close to announcing an agreement with the FSA which would allow the group to continue with the much-publicised £24 billion acquisition of AIG's Asian operations. The deal appeared to be in turmoil after the FSA requested more time to look through various capital adequacy requirements for the enlarged group. This caused confusion and concern within investment...Read More
Lehman Brothers art collection to go under the hammer
Lehman Brothers, the massive financial conglomerate which collapsed as a result of the credit crunch, is again in the headlines with news that the company's art collection will go under the hammer very soon. It is believed that original signs from the company's various head offices will also be sold off with the famous Lehman Brothers office sign in London expected to raise around £3000. Overa...Read More
Experts gloomy on property slowdown
The current property downturn might wipe 20 per cent from the value of UK homes, a new poll indicates.This was the average forecast for the house price decline from a panel of property experts contacted for the survey by news agency Reuters.Analysts at banks, investment firms and research institutions were all among the poll respondents.Some of the experts even expected a drop in housing value of...Read More
Moody's confirms big four Triple-A ratings
Credit rating giant Moody's has today confirmed the Triple-A ratings for the UK, the US, France and Germany and while it has concluded that the risk of downgrades has increased over the last few months, it is unlikely the countries in question will lose their Triple-A ratings. There is no doubt that the increase in national debt, and the increase in budget deficits, between the big four is conc...Read More