Friday 23rd November News Headlines

Economics

The Bank’s governor Sir Mervyn King has warned a lack of clarity in the forthcoming banking bill could allow financial lobby to wreck the ring-fence reforms. Sir Mervyn said that legislation risked putting the onus on regulators to outline what financial activities should be permitted within the retail bank ring-fence. Paul Tucker, the deputy governor of the Bank, presented the dangers of shadow banking, hidden and unregulated activities that still have the capacity to the blow up the economy. Tucker, however, did fail to endorse Sir Mervyn criticising the Treasury’s decision to water down the “leverage ratio” which determines the level of risk banks take. 

Recruitment

Pay in compliance and risk jobs is soaring thanks to a wave of regulation sweeping the financial services industry. Research by recruiters Robert Half show high demand for experts in audit, compliance and risk management is driving wages through the roof with other City workers seeing mass layoffs and salary cuts.  

Personal Finance

The coalition parties have agreed an energy deal that means households and businesses will pay £7.6bn towards cost of building greener power stations by 2020 which means energy bills are poised to rise by up to £178 a year. This is three times the current level and this agreement paves the way for next week’s long awaited energy bill, to be unveiled today by energy minister Ed Davey. The coalition hopes the increased levy will attract energy companies to build more low carbon energy plants in the UK. 

Property

The number of households now renting has increased by almost 48% over the past five years and therefore it is believed landlords who have survived the credit crunch have had an excellent recession. According to the NLA, one in five landlords is planning to expand their portfolio over the next 12 months. Figures from LSL reveal seven months of rent rises with landlords reaping an average of £744 a month, 3.4% higher than last year.

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