There is much intrigue and speculation regarding the fact that Vince Cable has been given a very long leash by the UK coalition government having issued a number of provocative and in some cases demeaning statements over the last few days. He has attacked the UK banking arena suggesting that "spivs" are still very prominent and he has also upset the apple cart with open criticism of the coalition government's immigration cap. But why is Vince Cable being given so much scope by David Cameron?
As if matters could not get any worse HM Revenue and Customs it has been revealed that the authorities are currently considering writing off up to £1.5 billion in unpaid taxes. It is believed that any overdue taxes which are more than two years old may well be open to legal challenges and therefore the authorities could decide to avoid any potential legal issues and just write off the estimated £1.5 billion in lost revenue.
A sharp spike in the public-sector spending deficit for August caught many analysts and economists by surprise although George Osborne has been fairly quiet with regards to these figures. The government will be very careful about building up concern for the future or indeed using the record August deficit to push through further public-sector budget cuts. It is also very dangerous to take one monthly figure in isolation because ultimately next month could be very different.
This week's news that the public-sector budget deficit hit a record high in August has caused concern amongst investors and economists in the UK. However, should we be concerned about a short-term increase in public-sector borrowing or is the situation under control?
Energy Secretary Chris Huhne has certainly set the cat amongst the pigeons this morning with news that the UK government should receive 10% of overall revenue from green taxes by 2015. As a consequence, there is already speculation that taxation on petrol in the UK could be increased by up to 30p a litre. It seems yet again that UK motorists are in the firing line and likely to bear the brunt of future tax rises.
Vince Cable, the business secretary for the coalition government, has again today attacked the UK banking industry for "outrageous bonuses". While there's no doubt that the banking arena is appearing to prosper while many businesses and consumers around them fall by the wayside, is it right that the banking sector is made to pay again?
Today's news that the UK credit rating in worldwide markets is "stable" in the minds of Moody's, the renowned credit rating agency, is certainly a feather in the cap of George Osborne. This is a man who is known to be highly intelligent although many people doubted his ability to perform at the highest office. However, David Cameron has had the utmost confidence in George Osborne since day one despite various calls from within the Conservative party and indeed the Liberal Democrat party for his demotion.
Nick Clegg, the deputy prime minister, has today addressed the Liberal Democratic Party conference with a claim that spending cuts were required as soon as the coalition entered office due to the perilous state of the UK's finances. He, like many people in the coalition government, believes there was a real danger that the UK sovereign credit rating would be downgraded which would not only increase the cost of future finance but also impact upon the reputation of the UK in overseas markets.
Net public sector borrowing in the UK hit a record high of £15.3 billion in August which was up from £14.1 billion over the same period last year. This was well ahead of analyst forecasts of a £12.5 billion shortfall and is likely to see the UK government miss its target annual borrowing figure of £149 billion. While the figure for the August was a surprise to say the least it does further strengthen the UK government's appeal to cut UK public sector spending.
The Confederation of British Industry (CBI) has today come out in support of the UK government and plans to cut welfare and social spending in the UK. This is a very controversial area of proposed budget cuts and has prompted unions around the UK to announce significant strike action which could effectively paralyze the UK in the future. So why is the CBI backing the UK government?
