TOP STORIES
CARTOONS
MAGIC MONEY TREE
POSH GRAMMAR
OSBORNE KERCHING!!
PROMISES PROMISES
SOUTHERN FAIL
DUMB POLLSTERS
DON'T BLAME TRUMP!
£13bn APPLE TAX DODGE
SAFE SEATS = BREXIT?
UKIP v LABOUR
ALL OUT OF IT TOGETHER
EU IMMIGRATION
TORY v TORY
PRISON SUICIDES
LONDON LEAVES UK!
EU v TORY MANDATE
HMRC IS A TAX HAVEN
PANAMA TAX LEAK
IDS v IDS
RICH v POOR
POSH BOYS
HELP2BUY PROFITEERS
LLOYDS, RBS CEO PAY
HSBC DRUG MONEY
PM'S MUM FIGHTS CUTS
PEAK "STUFF" IS HERE
HMRC GOOGLY
PENSION TAX RAID

Thursday 15 December 2016

Thursday, December 15, 2016 Posted by Hari No comments Labels:
Taxpayers foot £50m bill for Southern rail strike
Because of a deal struck with Southern by the Government, the cost of the disruption will be borne by the taxpayer. Under the seven-year deal, the Government pays Govia more than £1 billion a year to run the service. Ministers agreed to bear the financial risk of running the railway because of the significant disruption caused by the redevelopment of London Bridge station. In return, the fees that Southern collects in fares are passed to the Government. It means that during the 20 days lost to strikes this year – when there are no fares to collect – the Government must bear the cost of £38 million in lost revenue. The deal also states that the Government will pick up the tab for compensation claims likely to be filed by passengers who have paid season ticket fares but have no services to catch – an estimated £15 million. Nick Herbert, the Conservative MP for Arundel and South Downs and a former minister, said:  “Because of the way the franchise is structured, there isn’t proper accountability. It should be the company bearing the cost of compensation and failure to meet targets.” Meanwhile, Govia Thameslink Railway, the company that runs Southern, is saving an estimated £1.1 million in pay for train drivers and conductors who are out on strike this week. Govia could still be hit with financial penalties totalling tens of millions of pounds for delayed and cancelled services. However, it is claiming that disruption caused by strikes and staff sickness is a force majeure and it should therefore not have to pay the fines. TELEGRAPH

How Britain's biggest shops are pocketing YOUR delivery fee refunds on unwanted items and making up to £4.1bn
Online stores including Asos, Boohoo and Topshop routinely pocket the postage and packaging costs - often called delivery fees or charges - when customers return goods. A Money Mail investigation reveals that these online retailers could be breaking a little-known consumer law. According to the Consumer Contracts Regulations, introduced in 2014, customers who return items should get a refund for the price of the goods and the standard postage costs they paid for home delivery. Lawyers say the original delivery fee should be handed back automatically as part of any refund if the items are returned within a set period. Yet our research found many shops hold on to the cash - typically around £3 per delivery - unless you ask for it. Often your rights are buried in the smallprint on retailers’ websites. Then customers are made to jump through hoops to get the money they’re owed, such as filling in extra forms or making phone calls. For example, the press office for online clothes shop Asos, which made £1.4 billion in sales in the past financial year, says it does refund its £3 postage charge if a shopper asks. But when Money Mail contacted its customer services, an email came back saying the fees were a ‘non-refundable cost’ and made no mention of the law. Experts say most shoppers fail to claim because they are unaware of their rights or do not have time. In the UK, some 1.38 billion items were returned last year, says consultancy Clear Returns. It means shops could be sitting on £4.1 billion of postage fees. The Consumer Contracts Regulations 2014 state that if you return items bought over the phone or internet within 14 days of receiving them, you should receive a full refund. There does not have to be anything wrong with the goods: it’s enough simply to have changed your mind. The rules state that as well as a refund for the item, customers should get back their original, standard delivery costs if they return the whole order at once. DAILY MAIL

Families 'left at the mercy of fraudsters' who cost us £15bn a year after number of trading standards officers is cut by 56% since 2009
The National Audit Office (NAO) says consumer protection is suffering following massive cuts to trading standards services. Trading standards officers point to the horsemeat scandal, problems with exploding hoverboards and the fires linked to tumble dryers as evidence of what is going wrong. 'Some services now have only one qualified officer,' said the NAO. 'Despite this lack of funding, local trading standards teams are expected to enforce 263 different pieces of legislation for different government departments with little direction from government on the priority of these.' The NAO pointed to problems such as mass marketing scams, often involving bogus prize drawn, which are widespread and impact on the elderly and vulnerable. It said a typical postal scam victim, who is 74 years old and lives alone, will lose around £4,500. 'Many experience psychological problems,' said the NAO. The watchdog said e-crime is becoming a huge problem with, among other things, criminals defrauding wealthy individuals of large sums of money by selling non-existent investments. There is a problem of unsafe goods, which can cause injury and fatalities. Common recent examples include make-up that contained carcinogens, counterfeit medicines, and electrical items which caught fire when charging. And there is a burgeoning black market in counterfeit items. The NAO pointed to problems such as mass marketing scams, often involving bogus prize drawn, which are widespread and impact on the elderly and vulnerable. It said a typical postal scam victim, who is 74 years old and lives alone, will lose around £4,500. 'Many experience psychological problems,' said the NAO. The watchdog said e-crime is becoming a huge problem with, among other things, criminals defrauding wealthy individuals of large sums of money by selling non-existent investments. National audit office chief  Amyas Morse said Consumer protection bodies have shown they can make good impacts with limited resources. National audit office chief  Amyas Morse said Consumer protection bodies have shown they can make good impacts with limited resources. There is a problem of unsafe goods, which can cause injury and fatalities. Common recent examples include make-up that contained carcinogens, counterfeit medicines, and electrical items which caught fire when charging. And there is a burgeoning black market in counterfeit items. DAILY MAIL

Unpaid benefits at record level
A total of £1.7bn in benefits was not paid to those entitled to the money in 2015-16, a new record rate of underpayment. Nearly 65% of underpaid benefits - the equivalent to about £1bn a year - was the result of inaccurate information from claimants. The government said it was providing more help to claimants to provide accurate information. But David Samson, the welfare benefits project manager at the Turn2us charity, said that this support was not always easy to get. "People are finding it harder and harder to access face-to-face help with completing these forms, which is why this problem goes unnoticed. This is a particular concern for people living with a mental health problem or who have learning difficulty who may need the extra support when completing them. The latest figures showed the biggest rise in benefit underpayments was in Pension Credit, a top-up to the state pension for low-income pensioners. With this benefit, the DWP admitted that the biggest cause was official error. A year ago, the work and pensions select committee said that, while many parts of the welfare system worked well, underpayments needed a higher priority. Benefit problems "often led claimants to face difficult decisions over whether to pay their rent or provide essentials such as food, gas and electricity for their household", it concluded, with many becoming reliant on food banks as a result of underpaid benefits. Overpayments of benefits totalled £3.3bn, the equivalent of 1.9% of benefit payments, the DWP figures show. BBC NEWS

Completely fee-free basic accounts for the poor: millions are still paying fees
Basic bank accounts are designed for people who do not already have a bank account and are ineligible for a standard current account. While eight million people have basic accounts, around half of them are still liable to pay fees for failed payments. Completely fee-free basic accounts have been available since January 2016, following an industry agreement. Vulnerable customers who have such accounts are not charged for failed payments, or for going overdrawn. The Treasury figures show that 3.7 million people have accounts that do not conform to the agreement, struck between the government and the banking industry, in 2014. Of those, 3.6 million bank with Lloyds. Only 4% of those who have basic bank accounts with Lloyds have access to the cheapest banking terms, the figures show. Royal Bank of Scotland (RBS) is the only other bank where some basic account customers have to pay fees. At the other seven big High Street banks, all basic account holders receive the best deal on offer. BBC NEWS

Abandon net migration target, says CBI
The employers group, the CBI, is calling on the government to abandon an immigration target which was set by David Cameron and which then proved part of his undoing. Britain's biggest business group is attempting a very difficult balancing act. The CBI needs to acknowledge public concern over immigration while at the same time warning about looming labour shortages in key industries like agriculture, care and construction. The CBI insists that immigration has had little impact on wages, particularly in low-skilled areas. But privately, many bosses acknowledge that immigrants, who often sleep several to a room, and often leave their families back in Eastern Europe, are prepared to work for lower wages. And that depresses wages at the bottom of the pay scale. A Bank of England study found that although small, there was a "statistically significant" negative impact on wages in some unskilled occupations which had high concentrations of immigrant workers. The CBI raises some very real challenges facing UK businesses and the economy as a whole. There are serious questions about who will build Hinkley C nuclear power station, an expanded Heathrow airport, the HS2 railway project, and hundreds of thousands of new homes. An ageing population will need more carers, and turnips don't pick themselves. The government has been making some conciliatory noises. Speaking to business leaders in Cardiff, Brexit Secretary David Davis said that while freedom of movement will end in its current form, the government does not want to end up with damaging labour shortages in key areas. That raises the potential for work permits or visas to be issued on a sector-by-sector basis, as required by particular industries. BBC NEWS
Thursday, December 15, 2016 Posted by Hari No comments Labels: , , , ,
Chris and KJ realise it's Govia Southern Rail that has us over a barrel...

SOURCE TELEGRAPH: Taxpayers foot £50m bill for Southern rail strike
Because of a deal struck with Southern by the Government, the cost of the disruption will be borne by the taxpayer. Under the seven-year deal, the Government pays Govia more than £1 billion a year to run the service. Ministers agreed to bear the financial risk of running the railway because of the significant disruption caused by the redevelopment of London Bridge station. In return, the fees that Southern collects in fares are passed to the Government. It means that during the 20 days lost to strikes this year – when there are no fares to collect – the Government must bear the cost of £38 million in lost revenue. The deal also states that the Government will pick up the tab for compensation claims likely to be filed by passengers who have paid season ticket fares but have no services to catch – an estimated £15 million. Nick Herbert, the Conservative MP for Arundel and South Downs and a former minister, said:  “Because of the way the franchise is structured, there isn’t proper accountability. It should be the company bearing the cost of compensation and failure to meet targets.” Meanwhile, Govia Thameslink Railway, the company that runs Southern, is saving an estimated £1.1 million in pay for train drivers and conductors who are out on strike this week. Govia could still be hit with financial penalties totalling tens of millions of pounds for delayed and cancelled services. However, it is claiming that disruption caused by strikes and staff sickness is a force majeure and it should therefore not have to pay the fines.


OUR RELATED STORIES:

Recovery? What recovery?! Bank of England director explains why broke Britain is still broken

Brexit was about inequality in Britain, not immigration. Have our politicians realised this?

See the Stats: Osborne's 2016 budget protected the wealthiest while the most vulnerable suffer

Inequality: the UK has 9 of the 10 poorest regions in Northern Europe. But Inner London is the richest

Graphs at a glance: With highest pay and highest job growth is London sucking the life out of Britain?

Londoners earn 15% more 'cos London is damn expensive! But the poorest 5th in London are paid only 4% more

Graphs at a glance: Britain is already a low-pay economy with falling average wages

Is your Cost of Living crisis over?! Average wages are still back where they were 10 years ago


Thursday 8 December 2016

Thursday, December 08, 2016 Posted by Hari No comments Labels:
Britain's agency workers underpaid and exploited
Britain’s rapidly growing army of agency workers is as serious an issue as zero-hours contracts, with full-time agency staff earning hundreds of pounds a year less than employees doing the same jobs, according to a new report into the issue by the Resolution Foundation. Its report deplores that the “exploitation of agency staff remains unaddressed,” while the treatment of staff on zero-hours contracts at places like the Sports Direct warehouse in Shirebrook has made headlines and prompted changes. Lindsay Judge, senior policy analyst at the Resolution Foundation, said: “While zero-hours contracts are often in the news, agency workers are the ‘forgotten face’ of the modern workforce, despite being just as prevalent across the labour market. This fast growing group is not just made up of young people looking for temporary employment as some have suggested, but instead includes many older full-time, permanent workers.” Agency work is booming, but it means an average pay penalty of 22p an hour, equivalent to £430 a year for those working full-time, according to the report, entitled Secret Agents: agency workers in the new world of work. The loss of earnings rises to 45p an hour for permanent agency workers. Agency workers also lack basic employment rights: they are not entitled to sick pay or parental leave pay, have no notice period and little recourse in the event of dismissal. Despite the stereotype of agency workers being short term and temporary, half of all agency workers say they work on a permanent basis and three-quarters work full time. The number of office temps, bank nurses, fruit pickers, IT consultants and other agency staff has grown by 30%, or 200,000 people, to 865,000 since 2011 and is set to swell to a million by the end of the decade, according to the independent thinktank’s analysis of Labour Force survey data. Agency work is most prevalent in the healthcare and social sector, where 18% of all agency staff work, closely followed by manufacturing (17%) and business activities (17%). The latter includes conference organisers, credit rating agents, business consultants and literary agents. Nearly one in five agency workers are in London, but the East Midlands has the largest share of the local labour force working in this way (3.2%). GUARDIAN

Bank of England chief economist warns of regional growth inequality
Regional inequality in the UK is becoming more pronounced, Bank of England chief economist Andrew Haldane has warned. London and the South East are the only places in the UK where income per head is back above pre-financial crisis levels, he said. Net wealth has also fallen in places such as the North East of England. "The UK, I think, is towards the bottom of the league table within Europe in terms of its degree of difference across regions," said Haldane. He said that wage differences between regions of the UK could differ by as much as 50% and that the productivity gap between regions could be as much as 60%. Mr Haldane also said there had not been much evidence of those gaps shrinking over the past few years. "If anything these gaps, which are of long standing have nudged a little wider over the course of the UK's recovery," he said. There was no single reason why there were such big and persistent differences between regions, he said. But he thinks differing levels of skills and research and development could be partly to blame. "Very much more of the research and development occurs, as you might expect, in those high productivity, high income regions of the country," he added. Mr Haldane said regional inequality was among the most important issues facing the UK. Reducing the gap could open up considerable opportunities, he said. For example, he said that if the productivity levels of all companies could be brought up to the levels of those in the most productive parts of the UK it would boost productivity "by fully 20%". "It would take the UK right up there to rival the Germanies of this world when it came to efficiency and performance," he added. BBC NEWS

Manchester United manager Mourinho may face tax probe
The tax affairs of football manager Jose Mourinho should be investigated by British officials following allegations he used off-shore companies to reduce his tax bill, a UK MP has said. Mourinho is accused of moving millions of pounds of earnings to the British Virgin Islands to avoid paying tax. Further claims about the tax affairs of Mourinho - as well as other top international football stars - have been made in the Sunday Times and other European newspapers. The publications acquired leaked documents from the website Football Leaks, following a cyber attack on football agents earlier this year. Mourinho has been accused of using "a complex web of off-shore companies" to avoid paying tax in the UK and Spain. The allegations surround his time as manager of UK side Chelsea, between 2004 and 2007, and Spanish club Real Madrid, between 2010 and 2013. According to the reports, Portuguese-born Mourinho, 53, placed £10m (€12m) into a Swiss account owned by a British Virgin Islands (BVI) firm. The newspaper claims Mourinho and his advisers deducted substantial costs for a BVI company - which it suggests has no employees. The Sunday Times says Mourinho - as well as Real Madrid star Cristiano Ronaldo - also used bank accounts and companies in Ireland, Switzerland and New Zealand to process substantial earnings for their image rights. BBC NEWS

Energy firms failed to return £4bn in customer overpayments
An investigation by Radio 4's You & Yours programme has found that some domestic energy accounts are thousands of pounds in credit. Energy suppliers are under no obligation to tell customers if their credit becomes excessive. However, they must pay back the surplus if homeowners request a refund. Direct debit energy payments spread the cost of gas and electricity evenly across the year. Many customers are often in debit during the winter and build up credit in the summer. Ofgem has previously calculated that a typical customer's credit balance peaks at a little over £100 each year. Figures obtained from energy regulator Ofgem through a freedom of information request reveal that, in October 2015, the UK's energy suppliers held a total of £3.98bn of credit on their customers' accounts. At that time, there were nearly 31 million energy customers in the UK, but the credit is not evenly spread among customers. David Flanagan, from Warrington, was shocked to discover that his energy supplier owed him £3,049. "I was quite annoyed that the supplier had not bothered to contact me. If I'd have owed them £3,000, would they have been so tardy in contacting me? I can't believe that companies are so incompetent that they don't know what's going on," he said. The energy regulator, Ofgem, said people should keep an eye on their account and ask for a refund, if their credit felt too high. Some energy suppliers provide annual automatic refunds. British Gas, EDF, Npower, SSE and E.On told You & Yours they automatically returned credits each year, if meter readings were up to date, as did Ovo, Green Star Energy and Flow. First Utility said they provided refunds on request. BBC NEWS

Pfizer hit with record fine after hiking price of NHS epilepsy drug by 2,600% - costing taxpayer £50m
Drug firms Pfizer and Flynn Pharma have been fined nearly £90m for "excessive and unfair" pricing to the NHS after hiking the cost of an anti-epilepsy drug by up to 2,600pc overnight. The Competition and Markets Authority (CMA) said drug maker Pfizer and distributor Flynn Pharma broke competition law when they increased the cost of a medicine used by around 48,000 patients in the UK. The watchdog said their moves saw the cost to the NHS of phenytoin sodium capsules rocket from around £2m a year in 2012 to about £50m in 2013 - far more than Pfizer was charging in any other European country. Pfizer was handed a record £84.2m fine, while Flynn Pharma was fined £5.2m. The CMA has also ordered both firms to reduce their prices for the anti-epilepsy drug. The CMA said that before September 2012, Pfizer made and sold phenytoin sodium capsules to UK wholesalers and pharmacies under the brand name Epanutin and the prices of the drug were regulated. But Pfizer sold the UK distribution rights for Epanutin to Flynn Pharma in September 2012, which then saw the drug de-branded - or made generic - meaning that it was no longer subject to price regulation. Both firms then each ramped up the price of the drug, meaning that overnight the NHS saw the cost surge by between 2,300pc and 2,600pc, according to the CMA. It said the NHS at one stage saw the price of 100mg packs of the drug jump from £2.83 to £67.50. The NHS had no alternative but to pay, as epilepsy patients who are already taking phenytoin sodium capsules should not usually be switched to other products due to the risk of loss of seizure control. The fine comes after GlaxoSmithKline and a number of generic pharmaceuticals were hit with a £45m penalty in February after a "pay-to-delay" scandal surrounding blockbuster anti-depressant drug Seroxat. Glaxo was found to have made more than £50m of payments to companies making cheaper generic versions of Seroxat to delay them coming to market. TELEGRAPH

HSBC, JP Morgan and Crédit Agricole traders slapped with £413m fine after using chat-rooms to rig key bank rate
After a five-year investigation, the EU's anti-trust watchdog said the three banks colluded to manipulate the Euribor interest rate between September 2005 and May 2008 by exchanging sensitive information 'to distort the normal course of pricing'. JP Morgan was given the biggest fine at €337million. HSBC was handed a €33million penalty and Crédit Agricole was given €114million. The fines were based on the time each participated in the cartel and the value of products involved. In a statement, the European Commission said: 'The traders' aim was to distort the normal course of pricing components for euro interest rate derivatives... They did this by telling each other their desired or intended EURIBOR submissions and by exchanging sensitive information on their trading positions or on their trading or pricing strategies.' The case covers manipulation of financial contracts linked to the benchmark Euribor interest rate between 2005 and 2008. In 2013, anti-trust regulators reached a settlement with Barclays, Deutsche Bank, Royal Bank of Scotland and Societe Generale as part of the same case. HSBC, JP Morgan and Crédit Agricole did not agree to the 2013 settlement. DAILY MAIL

Spread-betting industry loses £1bn after City watchdog steps in
More than £1bn has been wiped off the stock market value of the spread-betting industry after the City regulator announced a clampdown to protect inexperienced retail customers from unexpected losses on complex trades. The Financial Conduct Authority said it was concerned about people opening online accounts with spread-betting providers without understanding the products they were trading. A representative sample of customer accounts found that 82% lost an average of £2,200 on the products, known as contracts for difference (CFDs). The regulator proposed a series of measures to protect consumers, including standardised risk warnings, compulsory disclosure of total profit-loss ratios across all clients, limits on trading using small amounts of capital and banning companies from using bonuses to tempt people to start trading. Shares in publicly traded spread-betting companies plunged after the announcement. Shares in IG Group, the biggest operator, plummeted by 32% to 532p, wiping more than £900m off its value. The FCA has been examining the industry since July 2015. In February, it told companies to do more to protect customers from losses after finding that checks on their suitability and warnings about risk were inadequate. GUARDIAN

British thinktank received £25m from Bahraini royals, documents reveal
A British thinktank that bills itself as a global authority on military and diplomatic affairs has been accused of jeopardising its independence after leaked documents showed it has secretly received £25m from the Bahraini royal family, which has been criticised for its poor human rights record. Confidential documents seen by the Guardian show that the country’s repressive rulers donated the sum to the London-based International Institute for Strategic Studies (IISS) over the last five years. The documents also reveal that IISS and the Bahraini royals agreed to “take all necessary steps” to keep most of the donations secret. The Bahrain donations make up more than a quarter of IISS’s income. The confidential documents have been obtained by Bahrain Watch, an independent organisation that seeks to promote democracy and social justice in the country. The group believes the secret donations undermine the independence of IISS, which says it is a non-partisan organisation that provides objective information about the world’s security issues. IISS has rejected the accusation. IISS, whose headquarters are on the north bank of the Thames in central London, said its mission was to promote “sound policies to further global peace and security and maintain civilised international relations”. Its specialists are often quoted in the media. Campaigners have criticised Bahrain’s rulers for dissolving the main political party, jailing and torturing activists, and persecuting opposition supporters and clerics. GUARDIAN

Thursday 1 December 2016

Thursday, December 01, 2016 Posted by Hari No comments Labels:
UK living standards squeeze 'will be worse than after global crash' over next 5 years
Analysis of Wednesday’s autumn statement by the Resolution Foundation thinktank suggests average earnings are set to grow only half as rapidly as in the austerity years after the economic crisis. At the same time, living standards will be undermined by higher inflation and ongoing welfare cuts. While the squeeze of the last parliament affected workers across the income spectrum, the foundation says low-paid households are set to be hardest hit over the next five years, because they are particularly affected by planned welfare cuts. The chancellor, Philip Hammond, announced a modest softening of cuts to universal credit in the autumn statement, but a £3bn cut in the “work allowance” claimants can earn before their benefits are withdrawn will go ahead. His predecessor George Osborne also previously announced a four-year cash freeze in most in-work benefits, which will go ahead. The foundation’s director, Torsten Bell, said: “Unlike the last parliament, it will be low- and middle-income households who feel the tightest squeeze this time round.” The foundation cites forecasts from the Office for Budget Responsibility (OBR), which predicted a challenging fiscal climate in the face of Brexit and wider international economic uncertainty. GUARDIAN

Bank governor Mark Carney warns on rising household debt
The governor of the Bank of England, Mark Carney, has said that consumers were borrowing more on their credit cards and other unsecured debt. Figures from the Bank this week showed that credit card lending is at a record level, up by £571m in the last month. Overall unsecured debt - which includes overdrafts - is rising at its fastest pace for 11 years. The Bank's Stability Report showed that the overall ratio of household debt to income was 133% in the second quarter of 2016. The Bank said that was high by historical standards, although it was not as high as in the financial crisis. In general the outlook for UK financial stability after the Brexit vote "remains challenging", said the Bank's report. It said stability was dependent on an orderly exit from the European Union, while it would take time to clarify the UK's new relationship with the EU. Otherwise the greatest risks to UK financial stability are slowing growth in China and the eurozone, the report said. UK banks are particularly exposed to events in Europe. They provide more than half of debt and equity issuance by continental firms, and account for more than three quarters of foreign exchange and derivatives activity in the EU, it noted. BBC NEWS

National Living Wage 'has not hit employment' says government monitor
The Low Pay Commission said it had found "no clear evidence" of changes in employment or hours since the higher minimum wage was introduced in April. It said employment had continued to rise even in sectors most obviously affected, such as cleaning, hotels, horticulture and retail. The finding contradicts warnings from economists over the wage's impact. On Tuesday, the Organisation for Economic Co-operation and Development said the UK should be careful with plans to raise the National Living Wage, warning it could affect employment. The think tank's stance echoes the widespread claims of business organisations in the 1990s that the introduction of the UK's national minimum wage - which started in 1999 - would lead to widespread job losses. Those fears proved to be groundless, with the number of people in employment rising from 27 million then to nearly 32 million now. The Low Pay Commission warned that "in some cases" employers may have reduced other staff payments or perks to fund the higher basic wage, but said it had found "no significant change" in levels of overtime and the higher hourly rates paid for working on Sundays or bank holidays. The commission also said that the higher National Living Wage could "present challenges" for the social care sector, with many providers facing losses. The National Living Wage came into effect in April this year, and was set at a rate of £7.20 an hour for workers aged 25 and over, with the aim of increasing it to £9 an hour by 2020. BBC NEWS

Government outlines plans to make companies justify high levels of executive pay
Among the measures under consideration are pay ratios, which would show the gap in earnings between the chief executive and an average employee. Shareholders would be handed more powers to vote against bosses' pay, but the government will not force companies to put workers on boards. Prime Minister Theresa May has made tackling corporate excess a priority. Her Conservative government is "unashamedly pro-business", but big firms must earn and keep the public's trust, she said in the consultation plans. Chief executives of FTSE 100 firms now have a median pay package of £4.3m, which is 140 times that of the average worker, according to the High Pay Centre. "There may be some circumstances where that is defensible, but it should be for the boards of companies and executives to justify that," Business Secretary Greg Clark told the BBC. He said the UK was not alone in targeting pay ratios, with the US set to report them at the start of next year. However, businesses have warned it would be difficult to compare pay ratios across companies. By comparing pay gaps, Goldman Sachs will look like a more equitable company than John Lewis thanks to the very high pay of the average banker, which is around £400,000. Other suggestions from the government include more frequent binding votes by shareholders on chief executive's pay packages. "The right thing is to give greater powers to shareholders to do their job in holding executives to account," Mr Clark said. The proposals form part of the government's Green Paper on corporate governance reform, which aims to increase public trust in business. The paper also includes measures on: Ensuring the "voice" of employees and customers is better represented on company boards; Holding privately-held firms to the same corporate governance standards as publicly listed companies. BBC NEWS

Government starts review of low pay 'gig' economy
A team of four experts is preparing to tour the UK to explore how the "gig" economy is affecting workers' rights. Mathew Taylor, chief executive of the Royal Society for the Arts, was appointed last month to lead the review into the impact of "disruptive" businesses such as Uber and Deliveroo. New technology combined with new business models has led to a rise in workers doing short-term, casual work. Many are not eligible for the minimum wage, sickness or maternity pay. The review will address questions of job-security, pension, holiday and parental leave rights. It will also look at "employer freedoms and obligations". Mr Taylor will be joined by the entrepreneur, Greg Marsh, who founded onefinestay, a company which helps upmarket home-owners let their properties to visitors, Paul Broadbent chief executive of the Gangmasters Licensing Authority and employment lawyer, Diane Nicol. The team will be talking to businesses and workers across the UK, including in Maidstone, Coventry and Glasgow. It will look into practices in manufacturing and rural economies as well as the "gig" economy. The government's Autumn Statement earlier this month indicated how the "gig economy" is also beginning to affect budget revenues, as self-employment and casual work reduce the amount of tax being paid. The Office for Budget Responsibility (OBR) estimated that in 2020/21 it will cost the Treasury £3.5bn. BBC NEWS

RBS fails Bank of England “stress test”
The toughest stress test yet assessed how the UK’s seven biggest lenders would cope with hypothetical scenarios including a recession, a housing crash and a halving of the oil price. RBS, which is still 73 per cent owned by the government after its bailout in 2008, has emerged as the worst hit in the annual health check of the banking system. This means the lender must take action to protect itself against a sharp slump in the economy. RBS has issued a plan intended to bolster its financial strength by an estimated £2bn, which has been accepted by the BoE. Barclays and Standard Chartered also struggled under the test, however neither was required to submit a revised capital plan. The test also covered HSBC, Lloyds Banking Group, Santander and Nationwide.They did not reveal any capital inadequacies in the test, the BoE said. Britain's banking system underwent a severe real-life test in June when markets and sterling plummeted in response to Britain's vote to leave the European Union. Banks could be required to change their business models to make them more sustainable as they face a prolonged period of low interest rates and uncertainty over Britain's future relations with the EU after it leaves the bloc. INDEPENDENT

FCA may introduce price cap on rent-to-own goods possible, following success of payday loan cap 
Up to 400,000 people use rent-to-own firms to buy household appliances, paying the money back over three years. After interest, they can end up paying three times the original price. It follows a call for a cap from Citizens Advice, which said restrictions imposed on payday lenders two years ago had been a success. Citizens Advice also said there was a lack of affordability checks in the industry, meaning that people signed up to agreements they could not afford. And it said that rent-to-own firms did not always take a flexible approach when shoppers got into debt. However, BrightHouse, the biggest rent-to-own firm, accused Citizens Advice of producing a "misleading" and "inaccurate" report. The FCA said that it would be prepared to consider a cap in the rent-to-own market, but added that in the case of the payday loan sector it had been a "last resort". "The price cap is very much the thing we do when all other price measures don't look very promising," Andrew Bailey, chief executive of the FCA, told the BBC. Since January 2015, the FCA has imposed a cap on the amount that payday lenders are allowed to charge their customers. Loan repayments are limited to no more than 0.8% per day of the amount they borrowed, and in total no one should pay back more than twice the original sum. Since the introduction of that cap, Citizens Advice says that the number of people with payday loan debt problems has halved. So it wants similar controls on the rent-to-own market. Mr Bailey told the BBC that catalogue lending and pawnbroking would also be considered. It is important that people can still have access to credit, but the FCA wants them to have it "on terms that are fair to them", he said. BBC NEWS

Line rental prices up 41% in just six years while wholesale costs fall by a quarter. Is it finally time to clamp down on price hikes?
Households are being ripped off when it comes to landline rental prices, damning evidence from Ofcom suggests. Telecoms providers have been rising line rental prices consistently since 2010 largely blaming 'infrastructure costs' - but the watchdog says wholesale costs have actually fallen by a quarter in that period. As a result, it has finally today launched a review into the monthly cost faced by anyone who wants broadband, even if they don't use the landline telephone. The watchdog says line rental prices have risen between 28 and 41 per cent in real terms since 2010 – this, despite providers such as BT, Sky, TalkTalk and Virgin Media benefiting from a 25 per cent fall in the wholesale cost of providing a landline service. The rise in rental prices have particularly hit those who rely solely on landlines, such as the elderly and vulnerable, the watchdog says. Ofcom adds that the elderly and vulnerable are more likely than most to have stayed with the same phone company all their life. They also do not benefit from strong competition in the market for 'bundled' communications – where landline, broadband and pay-TV services are packaged together. DAILY MAIL

Share This

Follow Us

  • Subscribe via Email

Search Us