Car Insurers Debate Over Future Profits

UK car insurers have been running an unprofitable business for 14 years. Independent market analysts, Datamonitor, say 2009 looks to be a profitable year despite the doubts

March 13, 2008

Budget Report Expectations

Chancellor Darling's Budget Report is expected to raise taxes on alcohol, fuel emissions, flights and many other issues concerning the economy. Tax burdens expected to increase on poorer families

March 12, 2008

Card Fraud Rises Again

Card fraud has increased over past year. Whilst chip and PIN technology has been successful in the UK, criminal activity overseas has increased 77 per cent

March 12, 2008

Tax Cuts Needed To Restore Confidence

Appeals for corporate tax cuts are submitted to the Treasury as it prepares its Budget report this Wednesday. Business and banking sectors are worried about the direction of the UK economy

March 10, 2008

First Time Buyers Take Hit From Stamp Duty

Stamp duty tax has not kept up with the rate of increase in house price inflation over the past decade. Yet another hurdle first-time buyers must leap over to get on the property ladder

March 10, 2008

Read all Finance News

Economy's Reaction To Interest Rate Freeze

Economists have had time to relax after their initial outbursts of indignation following the Bank of England's interest rate freeze at 5.75 percent. The Bank's Monetary Policy Committee (MPC) was pressured to follow the US and cut rates to strengthen consumer confidence in the money markets.

The BoE increased interest rates five times in the last year in response to increasing inflation. As the Consumer Prices Index of inflation falls below the official target of 2 percent, pressure builds to reduce the number of people falling into debt.

The British Retail Consortium stated their disappointment. The director general, Kevin Hawkins, said: 'Hard pressed consumers needed to see a cut in interest rates.

'There is clear evidence that disposable incomes are getting squeezed by higher living costs and the credit crunch and possibility of higher mortgage repayments is making consumers increasingly wary. As a result confidence is slipping.

'There is only one way for rates to go when the MPC meets again in a month's time and that is down. Consumers and retailers desperately need the relief.'

Economic adviser to the British Chambers of Commerce, David Kern, said: 'Given the worsening economic prospects, both UK and global, a cut today would have been justified and would have been very helpful in restoring confidence.'

Chief European Economist at Bear Stearns, David Brown, believes the cut in rates have just been temporarily postponed: 'We expect to see the Bank cut rates in November, with more rate cuts pencilled in for the first and second quarters of 2008.

'We think the Bank is targeting rates coming down to 5 percent by mid-next year.'

Published on October 23, 2007

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Lending Falls Again Says CML

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Interest Rates Kept At 5.25%

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March 7, 2008

20 Per Cent Of Homeowners Fear Repayments

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