Thursday 3 October 2013

Thursday, October 03, 2013 Posted by Jake No comments Labels:
Posted by Jake on Thursday, October 03, 2013 with No comments | Labels:

Offloading State's stake in Lloyds is 'biggest blunder since Brown sold gold', warns top aide to Vince Cable
Selling Government-owned shares in Lloyds Banking Group could prove as big a mistake as Gordon Brown’s ill-timed gold sell-off of the late 1990s. The alarm has been raised by Lawrence Tomlinson, a multi-millionaire adviser to Cable. Tomlinson said: ‘What’s the big rush? Just because we can get some money back it doesn’t make sense. I would hate to think they do the same thing Gordon Brown did.’ He suggested that banks themselves would not sell shares now if they had financed a turnaround in a similar way. ‘What bank funds a crippled business and sells it back to the market at the original price?’ he asked. The allegation that a sale might compare to Brown’s sale of gold at $300 an ounce will particularly hurt Osborne, who taunted him over the sale. Brown sold 400 tons in 1999 for £2billion. The gold price has surged since, meaning he lost out on as much as £9billion. DAILY MAIL

It's a bug's life as expert warns council cutbacks will lead to 'pest plagues'
Britain faces a dramatic increases in "pest plagues" and rat infestations as councils axe their pest control teams to cope with Government cutbacks, experts warned today. A new report warned that 15% of the nation's local authorities have discontinued their pest services and the number is set to rise "considerably". Simon Forrester, chief executive of the British Pest Control Association, said he feared a big rise in the rodent population, while the number of bed bugs were likely to rise in London because of the "influx of tourists" after the 2012 Olympics. TELEGRAPH

Google UK paid just £12m in corporation tax in 2012 on sales of £506m - but firm claims it pays its dues
The revelation will add pressure to the internet giant over its tax dealings. Google says most of its UK sales are generated by staff in Ireland, hence their low UK tax bill. But an investigation by Reuters found UK staff were responsible for sales rather than, as Google claimed, their colleagues in Ireland. Reuters further claims that Google's total UK sales for 2012 stood at £3.5billion. Google declared profits of $10billion (£6.1billion) worldwide in 2012. DAILY MAIL

Most payday loan customers 'borrow for food and heating' - while many lenders still fail to check they can afford to repay
A shocking survey has revealed that the majority of payday loan customers are borrowing to buy food, heat their home, or avoid eviction. The worrying findings come from charity group Christians Against Poverty. More than half the clients surveyed said they had taken out between two and five payday loans, with 78% of respondents saying they had used the money borrowed for food shopping. While the quick processing times may make the loans suitable when a person is approaching payday but hit with an unexpected cost they can't afford, only 5% of people surveyed said they had used the loans for an emergency. CAP chief executive Matt Barlow said: 'This evidence shows that people taking out payday loans are not, typically, doing cosy house repairs as most payday lenders would have us believe. People who take out this expensive sort of credit are hungry, worried about keeping warm and becoming homeless.” DAILY MAIL

Housebuilder share boom 'not sustainable'
House builders will not continue to deliver high returns for investors, say fund managers. Anthony Cross and Julian Fosh of the Liontrust Special Situations fund said they were “sceptical” about the “long-term sustainability” of the housebuilding sector. “We have ultra-low interest rates, we have a government policy that is deliberately trying to get the housing market going, we are now seeing talk about house price bubbles occurring,” said Mr Cross. “But in the meantime people’s real wages are lower than they were in 2008, so we would question the long-term sustainability of trying to pump up the housing market.” TELEGRAPH

David Cameron brings forward Help to Buy scheme
A controversial scheme allowing people across the UK to take out 95% mortgages will be launched next week - three months earlier than planned. Cameron rejected fears the Help to Buy scheme will fuel a housing bubble. He said: "If we don't do this it will only be people with rich parents to help them who can get on the housing ladder - that is not fair, it is not right." He rejected concerns - raised by Business Secretary Vince Cable among others - of an unsustainable boom in house prices, particularly in the south-east of England. BBC NEWS

George Osborne extends 'work for benefit' for jobless
The long-term unemployed will have to undertake work placements in return for their benefits. People will have to remain on “help-to-work” until they found employment - unlike the current scheme which is limited to six months. But a Department of Work and Pensions assessment of mandatory work activity - a similar compulsory work scheme introduced by ministers in 2011 - found it "had no impact on the likelihood of being employed". And on the work programme, DWP figures suggested one in 10 of those seen found a long-term job. BBC NEWS

New executive pay rules give shareholders binding vote
A firm's remuneration policy will now require the approval of more than 50% of shareholders for a policy to pass. Business Secretary Vince Cable introduced the shift to make a "clearer link between pay and performance". The move came after investor anger over rising boardroom salaries at a time of falling share prices. BBC NEWS

E.ON scraps fixed-price tariff scheme for thousands of pensioners
Tens of thousands of pensioners face higher gas and electricity bills this winter after the energy giant E.on today announced plans to scrap a tariff aimed at the over 60s. From next week, these customers will be "renewed" onto E.on's standard EnergyPlan, which could be as much as £180 a year more expensive, unless they call up and try to find a different deal. E.on insisted it had no choice following proposals from the industry regulator Ofgem for energy suppliers to cut the number of tariffs they offer to just four per fuel. GUARDIAN

Bank of England to beef up stress checks to measure the stability of the banking system
The bosses of Britain’s biggest banks could face the sack if they fail annual health checks to test their ability to withstand financial shocks. The Bank of England’s new beefed up ‘stress tests,’ to gauge the stability of the banking system, will start next year for the eight biggest lenders. The rules could be rolled out to cover smaller lenders over the next five years. The financial safety watchdog, the Prudential Regulation Authority (PRA), said that it could take even more drastic action. This could include forcing banks to cut back on bonuses and dividend payments, or raise more capital. DAILY MAIL


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