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Thursday, 24 November 2016

Thursday, November 24, 2016 Posted by Hari No comments Labels:
Virgin Care wins £700m contract to run 200 NHS and social care services
The contract, which was approved on Thursday, has sparked new fears about private health firms expanding their role in the provision of publicly funded health services. Virgin Care has been handed the contract by both Bath and North East Somerset NHS clinical commissioning group and Conservative-led Bath and North East Somerset council. It is worth £70m a year for seven years and the contract includes an option to extend it by another three years at the same price. It means that from 1 April Virgin Care will become the prime provider of a wide range of care for adults and children. That will include everything from services for those with diabetes, dementia or who have suffered a stroke, as well as people with mental health conditions. It will also cover care of children with learning disabilities and frail, elderly people who are undergoing rehabilitation to enable them to go back to living at home safely after an operation. NHS campaigners warned that the history of previous privatisations of NHS services in other parts of England may mean the quality of care patients receive drops once Virgin takes over. “In too many instances outsourced healthcare has resulted in care being compromised to cuts costs. Patients need secure services that they can trust and rely on,” said Paul Evans, co-ordinator of the NHS Support Federation, which monitors NHS contracts being awarded to firms such as Virgin. The collapse of the £725m UnitingCare contract in Cambridgeshire meant Virgin’s newly acquired contract would be the most lucrative ongoing deal for providing NHS care, he said. GUARDIAN

90% of appeals upheld against Concentrix, hired by HMRC to cut tax-credit payments
Concentrix was hired to help cut tax-credit fraud and overpayment, but has been accused in recent months of incorrectly withdrawing tax credits from hundreds of claimants. The BBC's Victoria Derbyshire programme has previously reported the case of Nicola McKenzie, a teenage mother who had her child tax credits stopped by the company after she was wrongly accused of being married to a 74-year-old dead man. Between 14 September and 15 November 2016, 24,219 claimants have now had their tax credits reinstated. Tax credits - the child tax credit and the working tax credit - are government payments made to households on low incomes. Catherine Smart Ekpenyong said she had been "elated" to learn her tax credits would be reinstated after they had been cut in August. "I cried, I shook, I was pinching myself," she said, adding that she would now be able to "do a normal food shop" and afford to travel to hospital to receive post-cancer treatment and check-ups. SNP MP Tasmina Ahmed-Sheikh called on the Chancellor to ensure compensation was available for all those affected. "Some are receiving it, but some aren't," she said. "There are paltry sums like £20 in some cases... it doesn't even cost the cover of the phone calls or the postage of sending documents again and again to be reviewed by Concentrix." HMRC has already announced the US company, Concentrix, will not have its contract renewed. In October, HMRC announced it would take on the work being done by Concentrix. BBC NEWS

Want affordable housing? Then force property developers who are sat on land to build homes or get out, say estate agents
Property developers who cling on to sites with planning permission for housing should be forced to construct homes within three years or sell up, a group says. 'Speculators who are sitting on land only to sell at a profit' are clogging up much-needed space for new homes, the Royal Institution of Chartered Surveyors said. More brownfield sites and unused land should be freed up to create affordable homes and councils need to speed up planning applications, the findings added. The government's Department for Communities and Local Government recently revealed that the number of affordable homes built in England in the past year fell to its lowest level for 24 years. There were 32,110 built, compared to 66,600 in the previous year, according to the government body's figures. With optimism in the market falling, over 80 per cent of respondents to RICS' latest survey said they were not expecting to market any starter homes in the next year. Jeremy Blackburn, head of policy at Rics, said: 'However, we must be clear that not all starter homes will be affordable homes... Building more starter homes is a help, but it is only one way to tackle the huge social problem of the lack of affordable housing.' DAILY MAIL

Three arrested amid Panama Papers insider trade inquiry
More arrests are planned in the joint-investigation by the Financial Conduct Authority (FCA) and the National Crime Agency (NCA), Bloomberg News reported. The Chancellor told the Commons that HMRC’s Panama Papers Taskforce had “identified a number of leads relevant to a major insider trading operation”. A team of HMRC officials has been combing through the millions of ­documents leaked earlier this year from the Panamanian law firm Mossack Fonseca. Their collaboration on the investigation recalls Operation Tabernula, Britain’s biggest insider dealing investigation yet, in which the NCA carried out covert surveillance. Among five Operation Tabernula convictions to date, earlier this year Martyn Dodgson, a former Deutsche Bank corporate broker received a four-and-a-half-year prison sentence. In a separate case, last week Mark Lyttleton, a former BlackRock fund manager, pleaded guilty to two charges of insider dealing. As well as leads on insider dealing, Philip Hammond said the Mossack Fonseca trove had prompted criminal investigations of 22 suspected tax evaders and identified the hidden owners of 26 suspicious offshore companies used to hold UK property, among other breakthroughs for investigators. TELEGRAPH

Big Six energy firms 'making six times more profit than they say', according to leaked PWC report
The suggestion is based on a report for Energy UK by respected accountancy firm PWC, according to the Sun newspaper. The paper said it obtained an original copy of the report which is said to show that the cost of supplying a home with gas and electricity "falls well below" what families pay with the Big Six energy firms. Energy UK cites on its website calculations by industry regulator Ofgem that operating margins in 2015 were equal to around 4% of a bill. It says that the Sun's figure does not accurately reflect costs across all tariffs, as to calculate actual profit margins across all deals offered by every supplier wouldn't be possible. But the paper accused Energy UK of cherry-picking parts of the report to put on its website which failed to include details of the profits. Energy Secretary Greg Clark said he would summon Energy UK for a meeting "to discuss the report's findings". "This report appears to confirm my concern that the big energy firms are punishing their customers' loyalty rather than respecting it," he said. SKY NEWS

Energy bills mislead with phantom savings offers
People have been told of savings of up to £200 that never materialise. Up to a third of households could be affected. One EDF customer in Norwich found such an offer on the front of her November bill, under the heading "Our cheapest overall tariff". "Over the next year you could save £42.08 by choosing Blue+Price Protection Nov17 with Direct Debit, our cheapest fixed electricity and gas tariff available for your meters," the message on her bill said. But if this customer took the offer up and switched tariffs, the BBC’s Money Box calculated her true saving would be just £4. Phantom savings can even turn into real losses. In one example analysed by Money Box, a £47 projected saving with Npower would actually lead to the customer paying £147 a year more than they now do. How does it happen? A methodology stipulated by Ofgem and known as the personal projection lies at the heart of the problem. The personal projection is a forecast of the amount a customer would spend on energy in the year ahead if they fail to switch when their current fixed term tariff expires. A failure to switch means customers are automatically put on their supplier's usually much more expensive standard variable tariff (SVT) reserved for people who rarely or never change suppliers or tariffs. So a customer nine months into a cheaper one-year tariff will have a personal projection made up from the remaining three months on their current tariff plus nine months on their supplier's SVT. This is stated, in part, on the bill. The result is a personal projection which is usually much higher than the amount someone on a fixed tariff is actually paying. Voltz and MoneySavingsExpert are among a handful of energy price comparison sites which, along with TheEnergyShop.com, have found ways to stop using Ofgem's personal projection methodology. They now simply compare the cost of proposed tariffs with what customers currently pay. BBC NEWS

Taxpayers may be liable for £75bn North Sea decommissioning bill, says GMB
The GMB's Scotland secretary, Gary Smith, told BBC Radio Scotland that the costs of decommissioning were "far more than was originally projected". He said the total bill could be "north" of £100bn and taxpayers may have to fund between 50 and 75% of that. He said: "The reality is we have got foreign owned oil and gas companies that are going to enjoy huge tax breaks at our expense and they are taking vital decommissioning work abroad... That's what's happened with the Janice platform, the Maersk platform which is going to Norway, and of course we had the rig which washed up on Lewis on its way to be decommissioned in Turkey... So Scotland is losing out on this vital work because of a lack of investment and because of a failure and dishonesty and dithering on the part of the UK and Scottish governments." Lang Banks, director of environmental group WWF Scotland, backed the union's report. He said: "Having made hundreds of millions of pounds in profits over the past few decades, the costs for decommissioning old rigs and restoring the marine environment should be being fully covered by the companies themselves." BBC NEWS

Lettings agent fees will be banned
Lettings agents in England will be banned from charging fees to tenants "as soon as possible" under plans announced in the Autumn Statement. Tenants can be charged fees for a range of administration, including reference, credit and immigration checks. Chancellor Philip Hammond said shifting the cost to landlords will save 4.3 million households hundreds of pounds. The worry is that agents will simply charge the landlord, who will pass the full cost onto the tenant. But the new law should spur competition as landlords, unlike tenants, can shop around for the cheapest agent. In Scotland, lettings agency fees to tenants have already been banned. Fees vary widely, with costs in some big cities much higher than elsewhere. The latest English Housing Survey shows fees typically cost £223. However, Shelter research in 2012 found that one in seven tenants pays more than £500. The charity said renters had no choice over the agent they dealt with after finding a house or flat. Landlords, on the other hand, were able to choose between agencies to act for them when renting out their property. Overall, along with rent in advance and a deposit, the average upfront costs faced by renters using a letting agency are more than £1,000 nationally and over £2,000 in London, according to Shelter. BBC NEWS

Thursday, 10 November 2016

Thursday, November 10, 2016 Posted by Hari No comments Labels:
Families set to lose £100 a week under 'chilling' new benefit cap
The annual limit on welfare payments to unemployed households drops from £26,000 to £23,000 in London and £20,000 outside the capital. Around 20,000 families are currently capped by an annual limit of £26,000 (or £500 a week) on total household benefits, introduced in 2013. But the new lower caps are set to bring an explosion in the numbers affected to around 64,000 households. Nearly two thirds of those affected are single mothers, according to the general union GMB. For single people without children the cap will fall at £15,410 in Greater London and £13,400 across the rest of the UK. According to the Department for Work and Pensions, the 23,500 households who previously had their benefits capped have moved into work since 2013. But analysis by the Institute for Fiscal Studies suggests that "the majority of those affected will not respond" to the tougher cap by moving into work or moving house. "For that majority it is an open question how they will adjust to the loss of income," it said in a report. The move comes amid warnings that the poorest half of households face flat or falling incomes over the course of the Parliament.  Lower wage growth and higher inflation could reduce typical earnings by around £1,000 a year by 2020, the Resolution Foundation warned. INDEPENDENT

Google pays €47m in tax in Ireland on €22bn sales revenue
Google’s controversial advertising sales business in Dublin earned revenues of €22.6bn (£20.1bn) from Europe, the Middle East and Africa last year but paid just €47.8m in tax, according to company filings in Ireland. Revenues at Google Ireland Limited rose 23% in 2015, to €22.6bn, and were equivalent to a third of the search group’s global income. Of this Irish income, more than $7bn (£5.6bn) is thought to have come from transactions with advertisers in the UK. Google has continued to route its sales from British advertisers through Ireland, despite efforts by the former UK chancellor George Osborne to crack down on multinational tech groups that “abused the trust of the British people”. Almost no information is made public about Google Holdings Ireland, which is an unlimited company. It is registered to the address of a law firm in Dublin, but is thought to pay no tax in Ireland as it is tax-resident in Bermuda. Because it is unlimited, Google Holdings Ireland is not required to file accounts, under Irish company law. However, Bermuda does not charge corporation tax, so the billions of dollars of income Google is able to move into Google Holdings Ireland each year go untaxed. Google has told investors that, at the end of last year, it had amassed an offshore cash pile of $42.9bn. Other US tech companies that have made use of “double Irish” tax avoidance structures include Facebook, Microsoft and Apple. Under pressure from world leaders, Ireland agreed two years ago to start phasing out the tax benefits of such structures. However, Irish ministers have awarded generous “grandfathering rights” which ensure Google and others are able to pour income into their offshore tax havens up until 2020. GUARDIAN

Government blocks attempt to ban unpaid internships
Draft legislation put forward by Conservative MP Alec Shelbrooke was designed to ensure that anyone working as an intern would be paid the minimum wage, which depends on the age of the worker. Speaking in parliament he described internships as “the acceptable face of unpaid labour in modern Britain today”. He added, they “should have no place in a meritocratic country that aims to work for the many and not the privileged few”. He added that his bill was designed to end “a new rise in the class society that means only those from a wealthy background can gain a privileged leg-up”. However, the bill was “talked out” and blocked by Conservative colleagues. Instead, the business minister, Margot James, said that the government would ask Matthew Taylor to include unpaid internships in his review of employment practices. The former adviser to Tony Blair is investigating the impact of the UK’s growing gig economy on workers’ rights. The campaign group Intern Aware said two-thirds of businesses backed a four-week limit on unpaid placements, and just 12% opposed such a cap. Internships are also controversial because they are perceived as biased towards the children of well-off professional parents who live in London. They are able to tap into their parents’ contacts to get valuable work experience and can also afford to take unpaid roles. GUARDIAN

Whitewash! It ruined lives and is being sued for £2bn, yet RBS is cleared of deliberately forcing small businesses under
Furious small business owners have accused the City watchdog of a whitewash after it cleared Royal Bank of Scotland of deliberately destroying their companies. The Financial Conduct Authority dismissed claims that bailed-out lender RBS sank small firms so it could seize their assets to shore up its ailing balance sheet. However, it did find the bank was guilty of poor communication, shoddy procedures and unfair complaints-handling when struggling businesses fell into its turnaround unit. RBS has finally bowed to pressure to compensate entrepreneurs whose livelihoods were destroyed after their firms dropped into the infamous global restructuring group (GRG). But campaigners dismissed the FCA's findings as a stitch-up and said the £400million compensation on offer was not enough. They have vowed to pursue RBS through the courts for an estimated £2billion. Jeremy Roe, of the activist group Bully-Banks, said: '[The FCA] is more interested in protecting the bank than providing justice. This is yet another whitewash. The £400million figure is a joke.' The seeds of the scandal were sown in 2009 as the financial crisis took hold and small companies struggled to pay back their loans. Firms which passed into the hands of the unit were told it would help them improve their finances and battle back to health. But instead, many claim they were ordered to pay more than they could afford as the bank's influence on their operations grew. When companies' finances collapsed, administrators were called in and RBS took control of their land and assets. Many entrepreneurs lost their homes and saw their marriages destroyed as a result. The RBS compensation scheme will give the 12,000 companies that were in the GRG between 2008 and 2013 an automatic refund of any complex fees charged at the time. DAILY MAIL

Household debt hits a record high of £1.5 TRILLION as Britons rack up £30k on mortgages, credit cards and loans
Britons are racking up debts at the fastest pace since before the financial crash, with the average adult owing £30,000 on average, a new report suggests. The Money Charity said the figure is set to rise and has expressed concern that households could struggle to honour their repayments if interest rates are to rise from current rock-bottom levels. Household debt including mortgages, loans and credit cards hit a new record high of £1.5trillion at the end of September, an extra £52billion compared to last year, according to the report. This translates into an extra £1,046 per adult on average a year, for a total of £30,000 per person, in what is the fastest increase since before the 2008 crash. Private debt is now 82 per cent of what the entire UK economy produces in a year and 113 per cent of average earnings, the Money Charity said. Most private debt is made of mortgages, which account for 87 per cent of the sum, or just over £26,000, although borrowing on credit cards has risen substantially. Unsecured debt including credit card debts and personal loans make up the rest. This has also risen in the past year, with UK adults on average owing an extra £247 each, bringing the total to £3,737 per person at the end of September. Credit card debt, which rose to £65.7billion, is the biggest chunk of unsecured debt, with the average household owing £2,400 on plastic. Last week the Bank of England said it expected inflation to rise to 2.7 per cent next year. This could trigger a rise in interest rates, which in turn would mean higher interest to be paid on mortgages, loans and credit cards. The Office for Budget Responsibility in July forecast that household debt would reach £2.55trillion in five years – £1trillion more than the current figure. The Insolvency Service last week warned that Britons were entering 'a new period of problem debt' as 20 per cent more people became insolvent during the third quarter of this year than in 2015. DAILY MAIL

After Uber case, UK union pushes for pay deal at Deliveroo
A trade union is seeking recognition from British food delivery firm Deliveroo to allow it to negotiate a collective pay deal for its drivers, in the latest push for greater employment rights that could hit the flourishing 'gig economy'. The move comes barely two weeks after a tribunal ruled that taxi app Uber [UBER.UL] should pay its drivers sick and holiday pay as well as the minimum wage - a verdict that could affect tens of thousands of people across Britain. The Independent Workers Union of Great Britain (IWGB) wants Deliveroo, which is valued at more than $1 billion (80 million pounds), to recognise it as a union in the Camden area of north London, in the first stage to boosting pay and conditions. With their distinctive black and teal jackets, Deliveroo riders have become a familiar sight on London streets since the firm started trading in 2013, delivering food from restaurants. In August, Deliveroo started paying riders per delivery rather than per hour, which was described as a piecemeal "Victorian system" by the opposition Labor Party and sparked opposition from some of its riders. Deliveroo later apologized and said its riders could opt out of the new system, although the trials are continuing in areas such as Camden. "We want to force Deliveroo into a collective bargaining agreement with the union so that we can negotiate pay and terms and conditions for our members," said IWGB General Secretary Jason Moyer-Lee. The gig economy - where individuals work for multiple employers day-to-day without a fixed contract - relies on the self-employed, who generally do not receive rights such as the 7.20 pound hourly minimum wage. In a letter to Deliveroo, seen by Reuters, Moyer-Lee gave the firm 10 days to respond to the union's request. REUTERS

Further increasing the income tax threshold will benefit wealthier households more than the UK's lowest earners
A think tank chaired by the former Tory cabinet minister David Willetts claims the bulk of the £2bn tax break promised by former chancellor George Osborne will go to wealthier households. David Cameron promised in 2014 that a Conservative government would raise the threshold for income tax to £12,500 by 2020, taking a million low-paid workers out of income tax altogether. The move would also cut tax bills for 30 million more people. At the same time, Mr Cameron said the Tories would raise the level for the 40p upper income tax rate to £50,000. But the Resolution Foundation, which claims to campaign to improve the living standards of low and middle-income households, says that poorer families would instead benefit more from making the Government's new and controversial Universal Credit more generous. It also claims "unaffordable, unfair and unwise" tax giveaways by Mr Osborne have prevented the Government from meeting its targets to eliminate the UK's budget deficit. The Resolution Foundation says that despite his austerity rhetoric, Mr Osborne lavished massive amounts on a series of expensive tax cuts during his time at the Treasury. Together, the giveaways are worth £32bn this year, more than matching the £30bn budget deficit which Mr Hammond is projected to face for 2016/17, it says in its report. Without them, Mr Hammond would be on course to deliver a surplus in 2018/19. SKY NEWS

Thursday, 3 November 2016

Thursday, November 03, 2016 Posted by Hari No comments Labels:
Pensions Regulator begins legal proceedings against Sir Philip Green
The Pensions Regulator has begun formal legal proceedings against Sir Philip Green and Dominic Chappell that could force them to fill the £571m deficit in the BHS pension scheme, marking a dramatic escalation of the scandal surrounding the demise of the high street chain. The regulator said that after a “complex investigation” and months of talks with Green about a rescue deal for the pension scheme it was sending warning notices to the billionaire tycoon, Chappell and their companies. Lesley Titcomb, chief executive of TPR, said it was yet to receive “sufficiently credible and comprehensive offer” to bail out the BHS pension scheme, which has more than 20,000 members, despite Green pledging to fix the problems facing it. BHS collapsed into administration in April, leading the loss of 11,000 jobs and leaving a pension deficit of £571m. Green controlled BHS between 2000 and 2015, during which time his family and other shareholders collected more than £580m. Green sold BHS in March 2015 to Chappell, a serial bankrupt with no retail experience, for just £1. Retail Acquisitions collected an estimated £17m from BHS despite owning it for just 13 months until it fell into administration. Last month the House of Commons voted unanimously to strip Green of his knighthood, which was awarded a decade ago for services to retail. During a fiery debate in parliament, Green was lambasted and described as a “billionaire spiv”. GUARDIAN

HMRC chasing £1.9bn tax from UK's richest people
The National Audit Office said HMRC's specialist unit recovered £416m in 2015 from 6,500 "high net worth individuals" with wealth of more than £20m. But efforts are ongoing to recover an estimated £1.9bn, the NAO said. Each one of the group of 6,500 is assigned their own HMRC official to liaise with over their tax bill. The £416m is in addition to tax the wealthy individuals voluntarily declare, which totalled more than £4.3bn in 2014-15. They often have complex tax affairs involving different countries. The £1.9bn figure of tax that is "at risk" of not being received, is an estimate and not all of it will be owed once each case has been examined in detail, the NAO said. According to the NAO, HMRC is criminally investigating 10 high net worth individuals in relation to illegal offshore tax evasion, although just one has been prosecuted since 2010. It is aiming to increase the number of prosecutions to 100 by 2020. The specialist unit recovers £29 for every £1 spent on staffing costs, the NAO said. HMRC is also investigating the huge leak of records from law firm Mossack Fonseca, known as the Panama Papers, which revealed how the rich and powerful use tax havens to hide their wealth. According to the NAO report, tax officials have identified 40 of the wealthiest group in the leaked data and are deciding whether their files warrant further investigation. The report also found that 137 of the country's richest who had undisclosed assets in Liechtenstein used an agreement with the tax haven in 2009 to admit their liabilities in return for less harsh penalties, with an average settlement of £1m per person. BBC NEWS

Death of the payday loan? Lending plunges by 70 PER CENT as watchdog crackdown bites
Around 1.8million loans were issued last year, down from ten million just three years earlier, according to the chief executive of the Consumer Finance Association Russell Hamblin-Boone. The majority for firms offering high-cost short-term credit have moved out of the market altogether, with just 60 authorised firms remaining where once there were 240, analysis of FCA figures from the industry body suggest. ‘Margins are very small now and we have seen a reduction in the market as a result of the regulation and price control,’ he said. Stringent controls were placed on payday lenders in 2014 and 2015, in an attempt to protect borrowers from eye-watering fees and debts spiralling out of control. The new rules mean that borrowers incur no additional charges over and above 0.8 per cent interest per day. The maximum penalty that a lender can charge a customer who misses a payment is £15 over the length of the loan. The loan cost cannot escalate in interest beyond 100 per cent of the amount borrowed in the first place. Loans still incur very high levels of interest. However lenders are obliged to make sure that their customers can afford them and are treated fairly if they fall into difficulties. The new rules mean that for many firms operating in this area, offering payday loans was no longer profitable. Speaking to the Financial Exclusion Committee at the House of Lords, Mr Hamblin-Boone pointed out that people who take out this type of loan are ‘from all walks of life – in senior positions in industry to those on zero contract hours in catering and cleaning’. The average income of a borrower is £25,500, compared to the UK average of £26,000, while they are more likely to be working full time than the population as a whole, he said. The FCA crackdown saw several lenders issued with large fines and demands to pay compensation to customers. In 2014, Wonga was ordered to pay £2.6million to around 45,000 customers for unfair and misleading debt collection practices. CFO Lending, which traded under names including Payday First and Money Resolve, had to repay almost £35million to nearly 100,000 customers after the watchdog found evidence of ‘unfair practices’. DAILY MAIL

A third of money that banks make from customers comes from overdraft interest and charges. Watchdog to probe fees
Despite the huge cost, customers are rarely aware of what they pay and even more rarely switch accounts to pay less. As a result, the Financial Conduct Authority says it will take action to improve competition in the current account market. It follows a series of recommendations proposed by the Competition and Markets Authority in August as part of its investigation into retail banking. Data from information website Moneycomms shows that the Halifax reward account, NatWest/RBS select and TSB classic typically have the highest annual fees for slipping into the red. The average cost of a high street bank overdraft is now six times higher per month than it was seven years ago, rising from £2 monthly in 2008 to £12 today. More than half of UK adults incur a fee from spending over their limit. DAILY MAIL

Payday and car finance loan sharks forced to wipe off £414m of unpaid debts for more than 500,000 people
Motormile Finance, which bought debts from payday lenders including Cash Genie, Mr Lender, Lending Stream and WageDayAdvance, was found to have unfairly pursued customers. Now the Financial Conduct Authority has forced it to wipe out £414million of unpaid debts, and repay £154,000 to more than 2,000 affected customers. It said Motormile had been unable to provide evidence that the outstanding debt amounts were correct, leading to 'poor treatment of customers'. Online customer forums highlight a catalogue of complaints against Motormile, with borrowers claiming it added default notices to their credit histories even when they had not borrowed money. Others said they had been hounded by emails and house visits from debt collectors. Another person said Motormile had contacted her workplace, and provided personal details to her manager. 'The message stated they were sending an agent to my work,' she added. 'I got called into the office to ask if I was in any trouble and it was very embarrassing.' Yorkshire-based Motormile also trades as MMF, MMF Debt Purchase and MMF UK. In a statement chief executive Denise Crossley apologised to affected customers. Motormile is owned by Neil Petty, 52, and Barnaby Page, 46, who were paid £1.5million in 2014, and £530,000 last year, according to documents filed at Companies House. It collected £12.3million from debtors last year, and in 2014, it said it owned debt worth £808million. DAILY MAIL

Buying a home ‘cheaper than renting’ in two out of three towns
Website Zoopla compared rents being asked for twobedroom homes in 50 locations with average mortgage premiums and a 10 per cent deposit – the size often put down by first-time buyers. It found that in 60 per cent of towns and cities, buying was more cost-effective than renting. The proportion has increased since April, when buying was cheaper in 48 per cent of places. Owners in Glasgow fare particularly well, the research suggests, parting with an average of £450 per month, while renters fork out an average of £596. Owning in Birmingham and Bradford was also found to be particularly cost-effective. But renting often works out cheaper in southern England where house prices can be particularly high. In London, renting can work out £1,118 cheaper per month than a mortgage, while the difference in Cambridge can be £549 per month. The research assumed that a mortgage holder would be on a 25-year repayment deal with a fixed interest rate of 4.5 per cent. Lawrence Hall, of Zoopla, said: “Whereas back in April it was cheaper to service a monthly mortgage than pay rent in just under half of Britain’s big [towns and] cities, buyers are now offered better value in nearly two-thirds of these locations.” EXPRESS

Buy-to-let and second homes made up a QUARTER of all property sales this summer
Despite typical stamp duty costs tripling for second home buyers in April, HMRC data shows that 56,100 of 235,000 property purchases in the third quarter included the additional surcharge. As a result, this stamp duty hike clawed in an extra £440million for the taxman in the three month period of July to September. In total, HMRC has creamed an additional £670million from the move since April. The statistics show in the three months of April, May and June, a slimmer 30,300 of 207,900 purchases were for second properties, indicating investors had already rushed to beat the 1 April hike. This data indicates that despite the extra costs and the EU referendum decision, appetite for buy-to-let remains robust. The stamp duty surcharge on second homes was introduced by Chancellor George Osborne who announced it in his Autumn Statement in November 2015. As well as investors and holiday home buyers, it has hit buyers in a raft of scenarios, including parents buying for children. On top of the stamp duty hikes, landlords are losing one of their major tax breaks next year. A tax relief change will curb the amount of mortgage interest landlords can offset against tax on their property investments and could mean buying and renting out property is no longer viable for some. Some experts believe that as a result of the moves, rents could rise or tenants could be evicted as landlords look to sell before they are phased in. DAILY MAIL

Friday, 28 October 2016

Friday, October 28, 2016 Posted by Hari No comments Labels: , , , ,
Yes, say Fee, Chris and KJ...


The last 10 years have seen a great degree of change. But despite this change, one thing has remained constant – cities in the South have continued to outstrip their counterparts in the rest of the country across a range of measures: On population, cities in the South have expanded at twice the rate of cities elsewhere in the UK; The number of businesses increased by almost 27 per cent in southern cities, compared to 14 percent in other UK cities; The most marked figure is for jobs – for every one extra job in cities elsewhere in Britain between 2004 and 2013, there were 12 extra jobs in cities in the South.


OUR RELATED STORIES:

Only London and the south east have recovered from the bank crash, says Bank of England director

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

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, 27 October 2016

Thursday, October 27, 2016 Posted by Hari 1 comment Labels:
Theresa May faces Tory backlash over planned cuts to in-work benefits
Conservative backbenchers, including the former work and pensions secretary Iain Duncan Smith, are preparing to campaign against £3bn of planned cuts to in-work benefits, in a fresh sign of the pressure Theresa May faces from within her own party. Veterans of the backlash against the deep cuts to tax credits George Osborne was forced to withdraw last year are gearing up to put pressure on his successor, Philip Hammond, in the run-up to November’s autumn statement. They would like the chancellor, who has said he will “reset” tax and spending policy in the wake of the Brexit vote, to ease the hardship of families who are set to receive significantly lower handouts under the new universal credit (UC) system. While there is no parliamentary vote planned on the cuts, which have already been legislated for, the spectacle of centrist Tories taking to the airwaves to accuse the government of failing to protect the poorest families will underline the challenge May faces in governing her own party. Conservative MPs are particularly concerned about the low earnings thresholds workers hit before they start to lose some of their benefits; and the steep withdrawal rates, which mean some groups of workers would keep just 24p of every extra pound earned under the new system. David Burrowes, the Enfield Southgate MP who supported the battle against the tax credit cuts, said: “I share the concern that the changes to work allowances will mean that we do not yet have a welfare system where work always pays and too many people will be in work but in poverty.” Analysis by the Resolution Foundation thinktank suggests that families would be £1,000 a year poorer under UC, if the cuts are implemented. GUARDIAN

Number of Brits hospitalised by malnutrition QUADRUPLES
More than 16,000 cases of malnutrition were reported in hospitals in England last year. Malnutrition is described by the NHS as being a serious condition that occurs when a person’s diet does not contain the right amount of nutrients. More than 900 of these malnutrition cases were severe, which means that patients were in danger of starving to death. According to the NHS, there are an estimated three million malnourished people in the UK at any time. Campaigners believe increased food prices, lower wages and benefit cuts are to blame. Professor of public heath at Liverpool University, Simon Capewell, said: “It is a national scandal... The fifth wealthiest country on the planet is now suffering from Victorian diseases such as malnutrition, rickets, scurvy.” Professor Capewell said that for every person admitted to hospital for malnourishment, there will be 50 times that number getting care from their GP. Last year more than a million people accessed food banks because they were not able to afford their own food. The professor also highlighted that between 2007 and 2014 food prices rose 12 per cent, but wages dropped seven per cent. Labour MP Frank Field, who chairs the all-party parliamentary group on hunger, said: “The new data on malnutrition, as well as the data we have uncovered on the numbers of children who are underweight and anaemic, paints a grim picture of life at the bottom of the pile.” According to Mr Field, 20 per cent of children arrive hungry each morning to school. Tesco’s UK chief executive Matt Davies has warned that an increase in food prices will be “lethal” for struggling families. He said: “When family budgets are constrained, families end up buying the cheapest possible calories, which are often the least healthy, but become essential for mere survival.” EXPRESS

Economic benefits of expanding Heathrow 'exaggerated by up to £86bn'
Government figures show that the financial benefits of expanding Heathrow may have been overstated by up to £86bn, as rival Gatwick refused to rule out challenging the nod given by ministers to build a third runway at the west London airport. It has emerged that a report by the Department for Transport had more than halved previous estimates of the economic boost of Heathrow over 60 years, suggesting that an extra runway at Gatwick would bring virtually the same benefits. Government analysis suggested that expanding Gatwick would yield £54bn in benefits, less than the £61bn attributed to Heathrow but requiring the destruction of fewer homes and being a cheaper project overall. Government officials warned they disputed figures provided in the airports commission report by Sir Howard Davies that a third runway at Heathrow would boost the economy by up to £147bn, some £86bn more than the government estimate. INTERNATIONAL BUSINESS TIMES

Hard-up nurses being forced into debt as 35,000 rely on payday loans – almost double 2013's number
Unions have called for an end to the one percent NHS pay rise cap that has left nurses with a 14 per cent cut in real terms and forced them into debt. Payday lender CashFloat.co.uk’s research found that 11 per cent of nurses had applied to them for loans since January 2015, up from just six per cent in 2013. Josie Irwin, of the Royal College of Nursing , said: “It’s no surprise. They put up with the rise in the cost of living because of their commitment to caring for patients, but they can only be stretched so far.” A nurse from Buckinghamshire said: “My salary has been frozen for six years. I always end up needing more money.” And another, a mother of one from Hackney, said she had considered leaving the NHS through stress. She added: “Besides long hours and intense pressure at work, I am forced to take payday loans to pay my bills and support my family.” Danielle Tiplady recently completed her adult nursing course at King’s College, London. She said payday loans, food banks and university hardship funds were all becoming necessities for herself and her cash-strapped colleagues. Danielle, 29, said: “The alarming thing is a large number of nurses and students do use food banks and access hardship funds from universities. I do night shifts, weekends, bank holidays. I work during my actual holidays... I’m happy to do whatever when I’m there and I get stuck in because I know I’m part of the NHS. People who have this passion, I look and I see how upset they all are, and how tired they are, and they’re crying. They feel like they can’t do their job.” MIRROR

Delivery giant Hermes faces HMRC inquiry into low pay allegations
The move follows a Guardian investigation that revealed some self-employed couriers for the company, which delivers for retailers including John Lewis and Next, were taking home less than minimum wage. Some 78 couriers subsequently made complaints to Frank Field, the chairman of the House of Commons work and pensions select committee. They set out how their self-employment meant they received no paid holidays or sick pay. They also said they risked losing work if they were unable to do their rounds because of ill health or for other reasons. Twenty more also claimed they should be considered employees rather than self-employed. Edward Troup, HMRC’s executive chairman, said: “If we find that companies have misclassified individuals as self-employed, we will take all necessary steps to make sure they pay the appropriate tax, national insurance contributions, interest and penalties.” Troup made clear that he could not comment on individual cases, but said: “Individuals cannot be opted out of employment rights and protections, simply by calling them ‘self-employed’. We are committed to tackling false self-employment.” GUARDIAN

HMRC to take over work of tax credits firm Concentrix
Concentrix, the firm accused of incorrectly withdrawing tax credits from hundreds of claimants, is to have its work brought back in-house to HM Revenue and Customs, staff have been told. Work now being done by the US company will be taken on by HMRC immediately, said the Public and Commercial Services union (PCS). Last month HMRC said it would not sign a new contract with the company, whose present contract was due to end in May next year. Concentrix, which was at the centre of a parliamentary debate this week, had handled tax credit claims, having won a multimillion-pound contract to save the UK government money by preventing incorrect or fraudulent claims. MPs heard from one claimant, Sarah Broome, a 40-year-old single mother from West Molesey, Surrey, who claimed she was forced to go six weeks “out of pocket” due to a decision by the company to end her payments. OnThursday, Rebecca Long-Bailey, shadow chief secretary to the Treasury, said the HMRC move was a victory for those families who had been unfairly targeted by Concentrix. Mark Serwotka, general secretary of the PCS union, said: “We’re delighted HMRC has agreed with us this work is best carried out in-house and, crucially, has accepted our argument to protect the jobs of Concentrix staff by transferring them into the department. We will be pushing for these workers to be employed on the same terms as their HMRC colleagues. Sadly, this could all have been avoided. The fiasco is further evidence it is a false economy to hive off important public services.” GUARDIAN

Earnings rise fastest for the low-paid, thanks to higher minimum wage
A 6.2% rise for the lowest paid UK workers meant pay inequality narrowed between April 2015 and early April 2016, the figures from the Office for National Statistics (ONS) indicate. The pay gap between men and women has also shrunk slightly, it said. Pay overall rose at its joint highest rate since the financial crisis, driven by wage rises in the private sector. Weekly earnings for full-time workers were 2.2% higher in April from a year earlier, or by 1.9% after inflation. Despite the increases, the Resolution Foundation think tank points out that typical earnings still remain 6.8% below pre-financial crisis levels. The median average full-time worker was paid £539 a week - or £28,028 a year - before tax in April 2016. Generally, a worker in the highest paid 5% of employees saw a 2.5% rise in earnings in the year to April, but it was the lowest paid who have seen the fastest increase. The National Living Wage (NLW) came into force on 1 April, requiring employers to pay workers aged 25 and over at least £7.20 an hour. This led to an immediate pay rise for 1.8 million workers. Workers aged 21 to 24 have been paid the National Minimum Wage of £6.95 an hour since 1 October. Previously it was £6.70 an hour. Hourly earnings, excluding overtime, for full-time jobs among the lowest-paid increased by 5.9% from £6.86 to £7.26 between 2015 and 2016. Laura Gardiner, senior policy analyst at the Resolution Foundation, said: "The introduction of the National Living Wage has well and truly made its mark on pay across Britain. The new wage floor has contributed to a significant closing of the gender pay gap and a welcome fall in pay inequality. "But while 2016 has been the strongest year for pay in over five years, we may not see this level of growth again this parliament given the outlook for lower earnings growth and higher inflation in the wake of the Brexit vote. Debbie Abrahams, Labour's shadow work and pensions secretary, said: "The figures are yet more disappointing news for working people, with real earnings still below their pre-recession peak in 2008 and the number of people stuck in low-paid jobs increasing by 66% on last year." BBC NEWS

Bill for PPI mis-selling scandal tops £40bn, as Lloyds pays out another £1bn, Barclays £600m
The costliest mis-selling bill in UK financial services history became even more expensive on Thursday after Barclays set aside a further £600m to handle the cost of claims. Data compiled by the thinkthank New City Agenda shows that this top up for Barclays has pushed the total provisions incurred by the industry to £40.2bn. Lloyds Banking Group makes up £17bn of that total. The size of the payouts have already been cited as a reason for booming car sales and holidays. As one penny off income tax costs about £4bn, it could be regarded as a boost to household income. Not all the money has gone straight into consumers’ pockets. The latest data from the Financial Conduct Authority shows that from January 2011 – when claims started to be made – until the end of July about £25bn had been distributed by the banks and other firms which sold PPI. Claims management companies have, according to the National Audit Office, received up to £5bn of the payouts. The banks have also incurred billions of pounds of costs in handling the claims. They have not used all the money they have set aside, in anticipation of more applications for compensation. More than 50m PPI policies were sold, according to the former City regulator the Financial Services Authority. Banks sold most of them – around 45m policies, worth £40bn. A consultation run by the FCA into setting a deadline for claims closed earlier this month and could result in a cut-off point of June 2019 for remaining customers to make their case. It will also herald an advertising campaign, expected to cost £40m, to encourage customers to come forward and beat the deadline. GUARDIAN

Thursday, 20 October 2016

Thursday, October 20, 2016 Posted by Hari No comments Labels:
TfL to take over London's suburban rail services? Mayor Khan vows to end 'nightmare' delays and overcrowding
Plans to improve rail services for millions of London commuters have been submitted to the Government in a bid to end the “nightmare” of delays and overcrowding. Presenting his business case for devolving suburban rail services to Transport for London, Mayor Sadiq Khan said passengers had been coping with poor services for too long. He said the move has cross-party support from in and outside London, including MPs, London boroughs and Surrey, Kent and Hertfordshire councils. Transport Secretary Chris Grayling has so far appeared lukewarm about the TfL proposal, with insiders suggesting he was concerned about the impact on Kent and other counties outside London. However, he is not thought to be against more devolution in principle, and TfL hopes that with county councils on board he could be persuaded to hand over more control. TfL’s case focuses on suburban rail, but spells out that longer-distance services going beyond London’s boundaries would still be run by the Government and suggests these  commuters would benefit from related improvements. Crucially Kent, which has previously voiced the strongest objections, now says it is open to discussions. TfL’s business case sets out how  further devolution would help tackle the housing crisis, with potential for up to 80,000 new homes to be built within one kilometre of stations on newly-devolved lines, as well as boosting economic growth including  thousands of extra jobs. EVENING STANDARD

Just 2.6% of grammar pupils are from poor backgrounds, new figures show
Just 3,100 of the 117,000 pupils who currently attend grammar schools come from families poor enough to be eligible for free school meals. The proportion of students (2.6%) is lower than previously reported, and was last night seized upon by critics of the government’s plans for more selection in the state system. Across all schools, the average proportion of pupils entitled to free school meals in areas that currently select on academic ability is thought to be around 18%. The figures, compiled by the House of Commons library from Department for Education records from January this year, illustrated how selection was failing those from the least affluent backgrounds. The government’s green paper on education reform proposes that existing grammar schools should be allowed to expand and new ones be allowed to open, while existing comprehensives could opt to be selective. It also proposes encouraging multi-academy trusts to select within their family of schools, in order to set up “centres of excellence” for their most able students. Lucy Powell, the former shadow education secretary, said there were now 23 Tory MPs who supported her campaign to force a government U-turn on their plans to introduce more selection. “All the evidence shows that selective education creates barriers for disadvantaged children rather than breaking them down,” she said. “These figures tell the real story. A minuscule number of children on free school meals pass the 11-plus.” GUARDIAN

NHS head disputes Theresa May’s £10bn claim over health funding
The chief executive of NHS England, Simon Stevens, disagreed with the prime minister’s statement, which she repeated on Monday, that “the government has not just given him £8bn extra, we’ve given him £10bn extra”. The £8bn was pledged last year by the then chancellor, George Osborne. Stevens told the Commons health select committee that the NHS had only received the money it had asked for in two of the five years covered by the £8bn: 2016-17 and 2020-21. For those two years the budget increases the NHS is due to get are “in the zone” of the sums it needs to implement its Five Year Forward View plan to transform patient care to keep the service sustainable.  “But for the [other] three years we didn’t get the funding we requested,” Stevens said pointedly. “As a result we have a bigger hill to climb. It’s going to be more of a challenge in 2017-18, 2018-19 and 2019-20 [than NHS chiefs expected],” he added. While the NHS would get only “modest” extra sums in 2017-18 and 2019-20, “2018-19 will be the most pressurised year for us ... [because] we will have negative per-person NHS funding growth.” Sally Gainsbury, a senior policy analyst with the Nuffield Trust health thinktank, said that while NHS trusts had cut their unit costs by 13% since 2010, their income had gone down by 18% over the same period. GUARDIAN

Self-employed 'now earning less than in 1995'
The Resolution Foundation said that while the UK's self-employed workforce had grown by 45% since 2001-02, their weekly earnings had fallen by £60. It blamed the rise of lower paid jobs and the financial crisis, which had reduced pay rates. Adam Corlett, economic analyst at the Resolution Foundation, said that almost five million UK workers were self-employed - about one in seven workers and a record high. They included construction workers, hairdressers, taxi drivers, tutors and IT consultants, he said. According to the research, average self-employed wages were £240 a week in the 2014-15 financial year - the most recent period for which data is available - down from about £300 a week in 1994-95. TUC general secretary Frances O'Grady said: "Britain's new generation of self-employed workers are not all the budding entrepreneurs ministers like to talk about. "While some choose self-employment, many are forced into it because there is no alternative work. Self-employment today too often means low pay and fewer rights at work." Some companies have recently been accused of taking advantage of self-employed staff. Taxi app firm Uber is awaiting the outcome of a employment tribunal after two of its drivers claimed it was acting unlawfully by not paying holiday or sick pay. The US company says it has 40,000 drivers in the UK, so the result could have a significant impact on its costs. Meanwhile, takeaway delivery firm Deliveroo faced protests in August after saying it would pay its self-employed drivers per delivery, rather than on an hourly basis. The firm, which was also criticised by the Department for Business, soon backtracked and made the scheme optional. BBC NEWS

Asda faces £100m bill in equal pay dispute
Asda is facing a £100m claim from thousands of female workers after a class action was given the right to proceed with their battle for equal pay. Around 7,000 shop floor workers have complained they were received between £1 and £3 an hour less than staff at Asda’s distribution centres, the majority of whom are men. The case dates back to 2002 and to date around 9,500 past and current workers from across the UK have joined the class action, which is represented by law firm Leigh Day. Asda said it “continued to strongly dispute the claim” and had tried to argue that because the shops and distribution centres were in different locations workers were entitled to separate pay arrangements. “This is a dramatic victory for the workers we represent”, said Lauren Lougheed, a lawyer in the employment team at Leigh Day. “Asda tried to argue that because the shops and distribution centres were in different locations, with different pay arrangements, that Asda could pay the men what they like... This judgment will have far reaching implications on other supermarket equal pay claims including those we are bringing on behalf of around 400 Sainsbury’s workers who are in a similar situation.” TELEGRAPH

Thousands of rural pharmacies under threat again after funding talks with ministers break down
One in four local pharmacies had been threatened with closure after ministers said they wanted to withdraw a £170million subsidy for community chemists. This meant that up to 3,000 out of the 12,000 pharmacies in the UK – many of which are in rural areas - faced closure. There was a temporary reprieve last month when new care minister David Mowat said he would wanted “to make sure we are taking the right decision”. However the Pharmaceutical Services Negotiating Committee said it has now been told it faces cuts of 12 per cent in the current financial year, with more to follow in the year after. Sue Sharpe, the committee’s chief executive, said that if pharmacies were forced to close it would simply add to the pressures on the rest of health service as more people would turn to their GPs. TELEGRAPH

Sir Philip Green: MPs recommend stripping BHS ex-chief of knighthood
BHS was sold by Sir Philip last year, but then collapsed with the loss of 11,000 jobs and carrying a £571m pension deficit. A lengthy three-hour debate was held, during which Sir Philip was attacked from MPs across the parties. They did not hold back. Among the most notable criticisms was that he was like the autocrat Napoleon and the former boss of the Mirror group of newspapers, Robert Maxwell, as well as being an "asset-stripper". Labour's David Winnick branded Sir Philip "a billionaire spiv who should never have received a knighthood. A billionaire spiv who has shamed British capitalism". He added that his "billionaire's lifestyle" was a "form of provocation" to BHS employees and pensioners. Conservative MP Richard Fuller said: "Freedoms that are given to people who have enormous power over fellow citizens are based on people doing not only the legal thing, but the right thing.” Frank Field, chairman of the Work and Pensions committee, said Sir Philip could have solved the problem easily and been of help in building a stronger pensions regime. "We are dealing with a man who has huge sums in wealth. He could have dealt with the pensions problem and walked away smelling of roses," he said. "He would have helped us begin to set the debate about how we deal with pension deficits. He had nothing to say and couldn't help us lead the debate." Mr Field is pressing for the Pension regulator to take legal action against Sir Philip to make good the BHS pension deficit. A damning MPs' report on the High Street chain's failure, published in July, concluded Sir Philip had extracted large sums and left the business on "life support". At the time Sir Philip described the report as "the pre-determined and inaccurate output of a biased and unfair process". BBC NEWS

Pension blow for five million: Treasury U-turn means retirees are stuck with their rip-off annuities
The U-turn is a huge blow to older savers who were forced to convert their retirement savings into annuities. They can no longer hope to escape the often poor-value deals. Ministers say they acted to stop pensioners being exploited – they were facing fees of up to 20 per cent for cashing in. But campaigners accused the Government of breaking its promises and leaving millions in the lurch. Bought by workers with their pension funds when they retire, annuities pay a regular income for life. Many produce meagre returns. Under pension freedoms introduced in April last year savers reaching retirement were told they no longer had to buy an annuity with their pension pots – and could instead spend the money as they liked. But the reforms excluded those who had already bought an annuity. Some had only small pension pots and received little income. Others were victims of mis-selling. Ministers announced a few months later that the freedoms would be extended to these five million annuity holders from next April. That raised hopes that a second-hand annuities market would spring up to throw them a lump sum lifeline. But insurers have proved reluctant to buy back the annuities – with as few as two in ten major players saying they intended to do so. For their part, savers faced handing over thousands of pounds for financial advice. The Treasury said it was scrapping the policy because so few firms had signed up and that savers risked being stuck with poor deals. It claimed that only a small proportion of pensioners would have cashed in. DAILY MAIL

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