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

Northern Rock Shareholders Attack Compensation Plan

Since the Treasury's decision last week to nationalise Northern Rock a group of shareholders have viciously attacked the compensation plan set out for investors calling it "grossly unethical".

The uproar came about when the Treasury announced it should not be required to compensate investors for "value which is dependent on taxpayers support".

The UK Shareholders Association added to the discontentment by saying that any decision reached by an independent audit would be unfair.

A spokesman for the shareholder group said:

"By rigging the valuation this way, they will ensure that the value put on the shares by the valuer will be negligible."

In a letter to its investors the shareholder group said, "The government cannot benefit from its own actions in this way, to enable it to then acquire ownership at a minimal cost."

Northern Rock borrowed £25bn in emergency funds last year from the Bank of England when it hit troubled waters. It is expected to continue lending and seek retail deposits under public ownership.

Both big and small investors are strongly opposed to the Governments plans to nationalise Northern Rock, which could very well leave them with very little or even nothing. Already they are preparing to fight a legal battle against all odds.

Just two weeks ago, before the bank was set for nationalisation, shares closed at 90p valuing the bank at £379million, a mere 7% of its value during its peak in 2007.

Northern Rock's top shareholder, hedge fund SRM, has demanded it receives book value of 400p for its shares; otherwise it threatens to take legal action.

Smaller shareholder groups have claimed they would not rule out a possible appeal under the European Convention on Human Rights.

Published on February 26, 2008

Darling's Budget Report Highlights

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March 13, 2008

Lending Falls Again Says CML

The amounts borrowed by first-time buyers and home movers continue to drop as the credit crunch takes further grip on the UK mortgage market. Remortgage activity is on the increase as many switch from fixed-rate deals to tracker mortgages in anticipation of further base rate decreases from the Bank of England... Read More
March 12, 2008

10 Tips To Improve Your Credit

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March 7, 2008

Interest Rates Kept At 5.25%

Yesterday, 6th March, the MPC decided to keep the base rate at 5.25 per cent. This decision was to be expected as the Bank focuses on the pressures of rising inflation and a slowing economy. Analysts are predicting another cut to 5 per cent to happen in May unless economic conditions weaken substantially. Whilst some feel the MPC shouldn't wait too long before the next cut, many agree with yesterday's decision... Read More
March 7, 2008

20 Per Cent Of Homeowners Fear Repayments

The UK's financial watchdog, the FSA, published a survey of over 500 mortgage holders which revealed 1 in 5 are worried about being unable to keep up with their mortgage repayments. It is estimated that 1.4 million fixed-rate or discount deals will expire this year raising monthly repayment amounts. Twenty five per cent of those surveyed admitted they had no contingency plans to meet these costs... Read More
March 6, 2008