The Financial Services Authority (FSA) is this morning again the centre of attention with PricewaterhouseCoopers suggesting that recent proposal to shake up the UK banking arena with regards to remuneration and bonuses could lead to endless legal challenges. Under the proposals, the FSA would be able to void a contract between an employer and an employee if the employer breached the FSA's remuneration code.
The SNP is this weekend under immense pressure from the healthcare profession in Scotland amid claims that the party is looking to exclude the NHS from forthcoming budget cuts. In a very welcome show of common sense, various elements of the NHS have stepped forward to conclude that the sector should not be immune from efficiency and budget cuts in the short to medium term.
Today's revelation that the UK government is looking to give local taxpayers the opportunity to vote on above average council tax rises in the UK is certainly a very different approach to the subject but is it workable?
Eric Pickles, the local government secretary, has today revealed the UK government's plans for the future with regards to council tax increases. In future, being put forward as an example of the proposed changes, the public in South Yorkshire will have the chance to vote on excessive council tax hikes if they are above and beyond the increase in the retail price index. So how would this work?
Iain Duncan Smith, the work and pensions secretary, has this week announced major plans to revamp the UK benefits system and simplify what has become a very complicated process. Under pressure to introduce £11 billion of cost savings from the work and pensions budget, there is a need to ensure that the benefits system does not alienate potential workers from moving away from the benefit system.
The Scottish economy is facing £4 billion budget cuts over the next four years which could see the end of various free services in the country and a significant reduction in the public-sector workforce. The ruling SNP party has for many years attempted to sweeten the situation for the Scottish population with free prescriptions, council tax freezes and other benefits which are not available in the rest of the UK. However, the introduction of potentially £4 billion in budget cuts in the short-term could well blow open various promises made by the SNP in the past.
The European Union has effectively forced the Financial Services Authority (FSA) to review current regulations regarding banking remuneration and bonuses. While the FSA currently has various regulations in place regarding bonuses and remuneration in the banking industry, a consultation paper has been released for discussion. So what does this mean for the UK banking arena?
The National Institute of Economic and Social Research (NIESR) has today criticised the UK government's "emergency budget" suggesting that the £40 billion in spending cuts and tax rises could easily have waited a further six months. The Institute believes that the UK government brought forward the budget, under the banner of an "emergency budget", purely and simply to grab the headlines and give the impression that the UK was addressing its debt issues unlike countries such as Greece.
The UK government has chosen the final day of Parliament, before the summer recess, to introduce nine tax consultations which will drastically overhaul the UK taxation system. Some of the subjects which will be discussed in great detail by the government, business, consumers and MPs include the national minimum wage, inheritance tax and the PAYE system. While there is unlikely to be any great discussion before Parliament reforms later this year we have potentially a massive change in the UK taxation system on the way.
Today's announcement that the former UK government's £540 million advertising budget will be slashed by the coalition government is just the latest in a long line of budget reductions. While the government has already announced multibillion pound cuts in the public sector budget, this is literally only the tip of the iceberg and there are far more controversial announcements to follow. However, is the UK government cutting the budget too quickly?
