Regulators are set to take control of the key interbank lending rate Libor, as the British Bankers Association relinquishes control in the wake of the rate-fixing scandal. Libor – which banks use as a bench-mark interest rateand indicates whether lending conditions are good or bad – has always been run as a self-regulating index, but is now set for transformation after bankers were found to be giving the BBA false data for their own ends. City AM, p.1; FT, p,1. Jonathan Guthrie in Lombard says this pre-emptive move by the BBA amounts to banks telling customers “we can’t be trusted” and that the Bank of England is the front runner to take over control of the inter-bank rate. FT, p.18.
Better-off pensioners should be stripped of their taxpayer-funded benefits Nick Cleg said yesterday. He argued giving free TV licences, winter fuel allowance and free bus passes to all was difficult to justify at a time of wide-spread spending cuts. Telegraph, p.1. Meanwhile LV have found that around 2m over 50s plan to use their home as their pension. The report dubs them the ‘hippie’ (home is their pension) generation. More than one in four have no option but to rely on their property as they have no pension or one that is worth a paltry amount. Daily Mail, p,31
The Liberal Democrats could block plans to let people build large extensions without planning permission after intense opposition from councils. An emergency debate will be held at the Lib Dem conference today. Telegraph, p.6).
The crisis in social care means the economy is losing £5bn a year with people giving up an estimated £4bn in pay because they are being forced to give up work. More than 300,000 people quit work in 2010/2011 to look after relatives and the number is increasing because of continuing cuts to care budgets. Independent, p.1,3.