Will the UK economy ever be the same again?
In years gone by we have experienced many boom and bust phases in the UK economy but ultimately the economy has always reverted to type. While many people believe we will soon return to the boom and bust trends seen in the past there are growing concerns that the UK economy may never be the same again. So what is going on?
It may not just be the UK economy which could change forever because the credit crunch and resulting worldwide recession has had a massive impact upon government budgets, government investment and economies around the world. Prior to the credit crunch London was one of the capital cities of the financial sector although of late we have seen the introduction of a potentially damaging banking bonus tax, increased regulatory costs and the European Union looking to grab more power from the UK.
While it may be a little early to call the end of the boom in the UK financial sector there is no doubt that the knives are out for London and the sector is desperate for governmental protection. Whether Gordon Brown and the regulators will step forward to protect London remains to be seen, but this has been the engine room of the UK economy for some time and is vital to the country.
Share this..
Related stories
ACAS move to end British Airways dispute
The conciliation service ACAS is today set to issue a number of new proposals which could hopefully see an end to the British Airways dispute with Unite union. At this moment in time the proposals from the conciliation service will remain confidential but meetings with the two parties have been scheduled for this week. As a consequence of difficulties experienced at the last meeting between the tw...
Read MoreOptimism on UK unemployment
Today's unemployment figures showed 2.469 million people were jobless in the UK last month which is a significant improvement on expectations. However, while there is some room for positive sentiment after the release of these figures there are still many people who believe the economy will still struggle for at least another 12 months and unemployment could still top 3 million.
How...
Is the Treasury taking over UK financial regulations?
Storm clouds are gathering over the Bank of England with the news that Mervyn King was not consulted by the Treasury with regards to an array of imminent changes to the regulatory system. There is no doubt that the relationship between the Treasury and the Bank of England has been very strained of late and this latest announcement, which has infuriated the Treasury, will certainly not help the sit...
Read MoreRDR – Concerns over Advice Gap
There are increasing concerns over the effect the Retail Distribution Review (RDR) will have on mid-market clients seeking financial advice, as many believe they will be simply priced out of the market. There are two points to be considered when looking at mid-market clients; their value to Independent Financial Advisors (IFA’s), and their willingness to pay upfront fees for financial advice....
Read MoreHow long before the UK economy is back on firm ground?
While officially the UK economy has pulled away from the recession caused by the credit crunch many people are concerned there is more bad news in the offing, with problems in Europe and in particular the money markets. So while the UK economy would appear to be moving forward in the short term the relative strength below the surface has been very much weakened by the ever challenging budget defic...
Read More