Flawed government policy is wiping out struggling savers January 30, 2013 ONE of the government’s daftest policies is its underpinning of bank lending, a nationalisation of credit in all but name. The biggest losers from the funding for lending scheme have been savers. The effective average savings rate for new deposits has collapsed from 2.75 per cent in September to a miserable 2.11 per cent in [...]
Government didn’t rescue the US from Depression – it was corporate cash January 29, 2013 IS AMERICA heading for a boom? Real GDP has risen for 13 successive quarters and now stands 3 per cent above its peak level. A net total of 4.8m jobs has been created over the past three years, with a fall of 500,000 in the public sector massively outweighed by a 5.3m rise in the [...]
City development activity rises December 4, 2012 THE CITY has seen a pick-up in construction activity in the past six months with several schemes achieving early pre-lets, according to the latest Drivers Jonas Deloitte crane survey released yesterday. While office developments in the capital remained flat in the second half, the survey showed “a marked increase” in space under construction in the [...]
FTSE rally tops fresh peaks yet UK banks slip January 29, 2013 BRITAIN’S top share index hit new four and a half year peaks yesterday, with a strong rally in miners outweighing concerns about continuing problems in the banking sector. Data from the US offered fresh proof of improvement in the world’s biggest economy, with a strong pick-up in housing prices following above-forecast durable goods data the [...]
Cuadrilla mulls future investor growth plans January 13, 2013 CUADRILLA Resources, the Staffordshire based shale gas explorer, is in talks with potential investors over taking a potential stake in the business amid growing investment interest in the UK shale gas sector. The company, currently the sole driller for shale gas in the UK using hydraulic fracturing or fracking, is understood to be holding talks [...]
Osborne’s gambled on the wrong policy March 23, 2013 THERE is a striking paradox at the heart of George Osborne’s approach to the economy, as demonstrated yet again in yesterday’s Budget. He was remarkably risk-averse with his tax and spend policies, refusing to embrace the kinds of shock and awe tax reforms many of us wanted, or to cut spending faster, though he did [...]
End universal benefits and cut tax to rebuild UK future March 15, 2013 THE pre-Budget period is often typified by a cacophony of measures, ranging from the incisive to the interesting to the idiotic. But a focus on individual measures can cause us to lose sight of more fundamental themes. As such, I want to talk about the “why” in the economic debate, not only the “how”. Our [...]
Cameron faces HS2 anger from backbenchers January 28, 2013 DAVID Cameron yesterday raised the ire of his own party following the publication of the second half of the HS2 railway route from London to northern England. Most of the Y-shaped railway – which will link London to Leeds and Manchester – will run through Conservative-held constituencies, raising the prospect of a backbench rebellion when [...]
FTSE retreats for first time this year after highest close since early 2011 January 7, 2013 BRITAIN’S blue chip index fell yesterday for the first time this year, baulking at technical resistance levels having reached its highest close for nearly two years in the previous session. The FTSE 100 shed 0.4 per cent in broad-based losses, with every sector falling apart from financials, which received a regulatory boost over the weekend. [...]
Watchdog says stability rules will hit growth January 14, 2013 RAISING capital requirements for bank lending will promote financial stability but will also increase the cost of credit and hit the economy in the short run, the Bank of England acknowledged yesterday. Its policy document explaining how the Financial Policy Committee will try to identify and deal with financial bubbles also said the powers could [...]