Newspaper Summary – Tuesday 1st October

Property

Mortgage lending has hit 2008 levels even before the Help To Buy extension kicks in, according to figures published by the Bank of England. Many commentators have been critical of the scheme. Sue Foxley from Cluttons added that increasing funding in the absence of new supply in the capital and SE will hike up prices ahead of earnings and do little to alleviate renters’ fears. City AM, p3;

 

Main Economic/Business

At the Conservative Party conference yesterday, Chancellor George Osborne signalled another six years of austerity as he set out his aim for a UK budget surplus by 2020.  He has vowed to carry on squeezing welfare and other spending to meet his new fiscal objective. FT, p1; City AM, p1

 

Personal Finance

The Chancellor has announced that he will freeze fuel duty until 2015 as he wants British households to ‘share in the rewards’ of the economic recovery. According to Conservative aides, the party will fight the next general election claiming that a litre of petrol is 20p cheaper than it would have been under Labour’s proposed fuel duty escalator. However George Osborne conceded that the money to pay for the freeze was not yet in place. City AM, p2; Telegraph, p1;

 

Recruitment

New vacancies are at their highest for four years, adding to recovery hopes though optimism has been tempered by a continued salary squeeze. The report from Reed shows job opportunities have risen by almost a quarter in the last year. The best performing sector was construction with a 78% increase, while vacancies in retail and manufacturing were almost up a third compared to a year ago. Brian Groom, FT, p4

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