News Week: 3rd November 2008
When Lloyds TSB received a £4b cash injection of tax payer’s money government hardly expected the repayment to happen within the year, however that is what has been announced by Lloyds today.
This is good news for the taxpayer, not only does it mean that government will get some of its money back to put back into other struggling areas; but it also means that Lloyds will be free from any nationalisation threat.
Britain’s second biggest mortgage lender Abby announced a raise in its rates by half a point, the initiative behind this is to increase the profit margins. This rate increase however came days before Halifax, Nationwide, RBS, NatWest and Scottish Widows all announce a 1.5% rate cut to British homeowners. This rate cut is good news for homeowners as it will be saving them money on their mortgage; however the rate being charged is still 1.5% higher than the banks official base rate of 3%.
It is thought that within 3 months 4,000 businesses will become bankrupt and 300 people a day will become insolvent. Over the last year the number of firms having to be rescued by receivership shot up to 238%, this shows the fragility of small businesses and the future of the self employed.
Despite consumers tightening their purse stings British Airways have announced a possible increase in their fares of 10%. This move would be to try and stop the company’s profits from falling even more than the 92% they already have fallen this year. One reason for the falling profits is its falling customer base, if people need to fly; more and more are turning to budget airlines to save costs. However an increase in fares will turn more passengers away, spelling disaster for the company.
Unsurprisingly a survey this week revealed that workers are now more stressed than three years ago, hardly surprising in the economic climate. However the same survey shows that people are putting in an average of seven hours unpaid overtime each week, some people have even taken on a second job adding to their stress levels. All of this happens to keep their families form falling into debt and out of trouble.
By Charlotte Toop
