Displaying items by tag: finance

Brexit has had a significant impact on London’s financial sector, with an estimated 40,000 finance jobs lost since the UK’s departure from the EU, according to Michael Mainelli, the Lord Mayor of the City of London. This figure is at odds with previous estimates, including a 2022 assessment which put the job loss at around 7,000. While cities like Dublin, Milan, Paris, and Amsterdam gained positions from the migration of jobs, London’s financial centre has continued to grow, adding roles in insurance and data analysis, bringing the total workforce to 615,000. Mainelli's remarks come as Britain seeks to restore relationships with Europe amid a broader economic slowdown. Although many had hoped Brexit would reduce immigration and deregulate industries, it has proven difficult to disentangle regulations, and the economic slowdown has persisted. Keir Starmer is attempting to rebuild ties with the EU, focusing on improving business relations but ruling out rejoining the single market.

The Guardian reports that the Treasury has asked ministers to prepare for cuts of up to 10% in infrastructure spending, targeting projects such as hospital upgrades, road construction, and defence initiatives. Despite Chancellor Rachel Reeves' recent commitment to increased investment to stimulate growth, the government still faces a £22 billion financial shortfall. Economists warn that cutting capital investments could harm the economy and exacerbate the country's deteriorating public infrastructure. Reeves, set to deliver her first budget on 30 October, is expected to outline tax increases to fund public services, while also addressing departmental spending limits established before inflation and rising asylum costs worsened the deficit. However, some ministers argue that short-term cuts will hinder long-term economic progress.

The Bank of England is expected to lower its base interest rate to 3.5% in the coming months, a relief for home buyers and businesses as the UK economy shows signs of improvement. Experts predict the economy will grow at double the previously expected rate. One leading firm has highlighted the need for increased public investment to sustain this growth trajectory. While interest rates have surged due to inflation concerns, prompting households to save rather than spend, the easing of rates is expected to boost consumer confidence. The Organisation for Economic Co-operation and Development (OECD) also upgraded the UK’s growth forecast, positioning the UK just behind the US in expected economic performance within the G-7 nations. Despite lingering uncertainties, these optimistic projections suggest a stronger economic outlook for the UK in the near future.

An exposé has shown that the Bank of Baroda made it simple and easy for its agents to steal money from customers’ accounts - and some of them did. The bank’s employees had linked unauthorised mobile numbers to accounts before uploading them onto the bank’s new mobile app. These numbers were of bank staff, managers, guards, their relatives, and bank agents in remote areas. Internal documents show that some of the bank’s agents withdrew tens of thousands of rupees from customers’ accounts. The bank’s head office has asked the managers concerned to do everything necessary to restore the money to the accounts. The  Reserve Bank of India (RBI) has ordered an audit, and has told the bank to stop registering new customers on its app.

When Metro Bank was launched in 2010,it was the first new high street bank in 150 years. Now, there are concerns about its future. The bank, which has around 2.7 million customers, is reportedly in discussions with investors about securing £250 million in equity funding and refinancing £350 million in debt to strengthen its balance sheet. The issue is that it is operating at the edges of its capital requirements, meaning the amount of assets held by the bank that can be sold off at short notice if it faces unexpected losses. This move has rattled investors, causing the bank's share prices to plummet by over 25%. Despite these challenges, the bank stated that customer deposits are secure, and there is no indication of imminent collapse. In any case, the Financial Services Compensation Scheme (FSCS) ensures that customers' funds would be returned within seven working days in the event of the bank's dissolution. While the bank has faced difficulties in the past, it hopes to secure the necessary funding to navigate its current financial situation and continue serving its customers.

On August 3rd, the Bank of England’s base rate rose again to 5.25%. The last time it was 5.25% was in 2008. The Bank expects inflation to fall below 5% in the final quarter of 2023, while the government pledges inflation will be 5% or below by 2024. The Bank's increase influences the cost of borrowing, making mortgages more expensive, while at the same time offering greater returns on savings accounts. The theory is that raising interest rates makes it more expensive to borrow money, so people have less to spend, reducing demand and inflation. Meanwhile, rising interest rates, higher energy costs and squeezed consumer spending have weighed on retailers with Wilko homewares now on the brink of collapse, putting 12,000 jobs at risk. They have filed a notice of intention to appoint administrators after failing to find enough emergency investment. Wilko has 400 UK stores. See

Christian Aid have cut ties with Barclays over the bank’s investments in oil and gas industries. The bank is known to be one of Europe’s leading funders of fossil fuels. Sarah Edwards from Just Money Movement said, ‘I think charities, companies, churches, and individuals are all having to think now more about what our money is doing, and the kind of world that our money is shaping. I think that's a really positive step. And we're really pleased that Christian Aid have done this. Money shapes the kind of world we want to see. Banks don’t just sit on our money when it is in a current or savings account, they invest it, they lend it, and use it in different ways. Some of those ways we might not be happy with.’ Barclays said it will set an ambition to become net zero by 2050, as addressing climate change is an urgent and complex challenge.

As food prices soar the government is discussing plans for supermarkets to introduce price caps on basic food like bread and milk to limit the rising cost of living. A voluntary agreement with major retailers could see price reductions but there are no plans for a mandatory price cap. The idea of a freeze on basic food items is said to be at the ‘drawing board stage’. Supermarkets will be allowed to select which items they would cap and only take part in the initiative on a voluntary basis. The rate of inflation can be calculated in various ways, but the main measure is the Consumer Prices Index which tracks the prices of everyday items in an imaginary ‘basket of goods’. Expensive food may overtake energy bills in the cost-of-living crisis. Security tags are being fitted to expensive food, coffee jars are replaced with dummies, and some stores are limiting the number of items on shelves to reduce theft. See

Chancellor Jeremy Hunt’s budget scrapped the lifetime allowance on tax-free pension contributions. There were other key measures: Free 30 hours per week childcare is expanded to cover children from nine months to two years old. Fuel duty is frozen for another year and government help with energy bills is extended by three months. Funding will be provided for 50,000 places on a voluntary employment scheme for disabled people, called Universal Support. Tougher requirements to look for work and increased job support for lead child carers on universal credit. More places on ‘skills boot camps’ to encourage over-50s who have left their jobs to return to the workplace. Defence spending and corporation tax will be increased. The economy is forecast to grow by 1.8% in 2024 and 2.5% in 2025 and Inflation is forecast to fall from 10.7% last year to 2.9% by the end of this year.

Christian Labour MP Alex Cunningham said, ‘the budget lacks ambition to tackle the cost of living crisis and support those in need. There is nothing to deal with rising poverty. We need much more done for people at the bottom end of the income line. Above all we need to ensure food supplies are improved - we have already seen prices rise due to shortages. We must tackle these things in order to drive down inflation so that people get better benefits out of the money they have.’ The latest data from the Office for National Statistics reveals that 23% of adults in Great Britain are borrowing more money or using more credit. Policy Adviser for the Methodist Church, Paul Morrison, said that the Budget's number one priority should be to support the poor. People are experiencing destitution in the UK. Destitution should not happen in a country as wealthy as ours.