June 2012 Noteworthy News
The Queen’s Diamond Jubilee has brought about much retrospective - Looking back at the economy and thinking about how businesses were run very differently. There was the similarity of difficult economic times being shared 60 years ago, a time of hardly any FTSE 100, 250 ,or similar indicators, amongst a stock exchange that was similar to a club and difficult to imagine when we’re now in a time of the B-of-E’s MPC (Monetary Policy Committee) making decisions about pumping money into a recession hit economy.
Following much data and statistics, the MPC meeting this week is expected to keep its key lending rate at the record low 0.50 percent although questions have been raised about the health of the economy with regard to consumer spending, austerity cuts and trading partner, Eurozone, continuing crisis. It seems that quantitative and easing will be the words to watch for June. The first Open Data Institute (ODI ) has been announced, to support the growth of new businesses on the back of Government data. It is intended as the place to go for those using data to drive economic growth and exploit the commercial value of open data.
Banks, building societies and credit unions will be required by the FSA to display information explaining deposit guarantee schemes to their customers. They will be expected to explain which schemes apply to their customer’s deposits; currently the Financial Services Compensation Scheme has a limit of £85,000, with further deposits not being covered included, for example European banks which operate in the UK. The ruling comes into effect 31 August.
A licence to landlord may become the necessary accreditation to being able to operate in Wales, under reforms being proposed. The white paper includes a ‘fit and proper’ test being carried out on landlords before full registration status and LA’s being given discretionary power to increase council tax on properties empty for more than a year; there is also to be a Code of Practice introduced.
The short term prospects for mortgages and other loans remains in jeopardy if the Eurozone crisis persists, according to the CML (Council of Mortgage Lenders). As the ‘cross-border nature of banking means that UK banks cannot remain immune to what happens in the Eurozone’. Mortgage lending dropped away in April and gross mortgage lending fell by 19% against March.
A government initiative, Start Up Loans, for 18 -25 year olds, is the new kid on the block for assisting start-up businesses in the hope they can put some vitality into our dull economy with their new businesses, although some might turn prematurely grey when they realise the rules and regulations that some business types have to go through, and, before they even begin with any ongoing red tape such as the recent ‘pastygate’ VAT row which saw thermometers being readied for action only to be placed back down; following the U-turn about which product had what temperature at the point of sale. But, proving that entrepreneurs and small business go together (since at least 1952), a nine year old American was reported, in June 1952 of selling last year’s snowballs in that summer’s heat wave!
(Image and Article credit: Copyright SUF 2012)