The Bank of England took the unusual step of publically criticising the Co-operative bank yesterday. The regulator dismissed claims by the Co-op that a £1.5bn black hole in its balance sheet was not caused by its takeover of the Britannia Building Society. Neville Richardson, the Co-op’s CEO had told MPs that loan losses from Britannia had little to do with the bank’s problems, in direct contrast to evidence presented to the Treasury Select Committee by the Prudential Regulation Authority in July who said the losses related directly to assets inherited from Britannia. The Bank of England said it “strongly disagreed” with the Co-op’s view and Andrew Tyrie, Chair of the Treasury Select Committee said there was a “yawning gulf of evidence” between the two accounts.
Dyson are seeking to recruit 650 engineers in its most ambitious drive to date. It would triple the number of engineers at the company, with half recruited in the UK, bringing Dyson’s UK headcount beyond 2,000 people. It is seen by Andy Sharman in the Financial Times as a sign of a rebounding economy, coming at the same time as the Purchasing Managers’ Index hit its highest level since 1998 this week.
Ian Duncan Smith’s welfare reforms have been attacked by the National Audit Office which reports “weak management, ineffective control and poor governance.” The single benefit payment is designed to ensure claimants are always better off in work than in welfare. However, the programme is expected to be severely delayed by IT problems, amid spiralling costs and claims that DWP management don’t know how it is going to work.
A senior UN official is in Britain to assess the impact of the Bedroom Tax on people’s human rights. The move is designed to save £500m from the spare room subsidy but critics say it will tear families apart.