Economy

gold bars and coins

How are fund managers responding to gold price slump?

Traditionally considered a safe haven asset, gold is now becoming a questionable investment after the price saw its largest drop in the past five years. On 20 July the gold price plunged to $1,090 per ounce from $1,108 per ounce, it’s largest single day drop in five years. It continued falling during the week, marking its biggest […]

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Major parties accused of using ‘made up’ tax avoidance figures

Labour, Conservative and Liberal Democrat politicians are using “made up assumptions” of increased revenue generated by targeting tax evasion and avoidance, according to the Institute for Fiscal Studies. Tackling tax evasion and avoidance has proved a huge part of this year’s election campaign since HSBC was found to be aiding clients of its Swiss private […]

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HSBC to consider ditching UK headquarters

HSBC chairman Douglas Flint has promised shareholders the bank will re-evaluate the location of its headquarters. Speaking at a shareholder meeting in Hong Kong ahead of the bank’s London annual general meeting on 5 May, Flint was asked by investors about the location of the bank. According to reports, Flint said: “We are beginning to […]

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Lib Dems would allow councils to double tax on second homes

The Liberal Democrats is to announce plans to give local authorities power to double council tax on second homes. The announcement comes as part of a “Countryside Charter” unveiled today in Cornwall by Lib Dem leader Nick Clegg. The Lib Dems hope that by allowing councils to charge up to 200 per cent council tax, […]

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UK economy ‘to grow 2.8% in 2015’

The UK economy will take uncertainty created by the general election “in its stride” and grow 2.8 per cent this year, the EY ITEM Club says. The consultancy’s spring forecast, which uses HM Treasury’s economic modeling, predicts gross domestic product will hit 2.8 per cent this year and 3 per cent in 2016. This is […]

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Tories to raid pensions tax relief to slash IHT

Prime Minister David Cameron has pledged the Conservatives will create a new threshold for inheritance tax of £1m if elected. The changes would come into effect from April 2017, and will be funded by restrictions on pensions tax relief for those earning more than £150,000.  Annual allowances for savings will be tiered on earnings between […]

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BoE holds base rate at 0.5% for 73rd month

The Bank of England has voted to maintain its base rate, marking 73 consecutive months at 0.5 per cent. In a statement this morning, the Bank confirmed that its Monetary Policy Committee had voted in favour of maintaining rates, despite speculation that an increase may be imminent. The Bank’s base rate has sat at 0.5 […]

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Conservatives plotting non-dom clampdown

The Conservatives are evaluating a move to counter a Labour pledge of scrapping non-dom status by ending the ability to inherit the status. The Times reports that Chancellor George Osborne is considering blocking non-domiciled individuals passing down the ability to avoid paying tax on overseas earnings. The report comes just a day after Labour announced […]

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CBI: UK growth set to continue but Eurozone threat remains

UK economic growth is set to pick up in the next three months, according to data from the CBI. Figures from the CBI’s growth indicator show growth holding steady for the three months to March, with signs of positivity for the next quarter. In a survey of 764 businesses, the CBI found stronger growth in […]

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Shawbrook Bank valued at £725m in IPO

Shawbrook Bank has priced its initial public offering at 290 pence per share, valuing the bank at £725m. The offer will raise £90m through the sale of 75 million shares. Shawbrook is a specialist savings and lending bank offering buy-to-let, bridging and commercial loans with all lending arranged through brokers. It was founded in 2011 by […]

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John Cridland to step down as head of CBI

CBI director general John Cridland is to leave the business lobbying group after five years in the role. The CBI has appointed recruitment agency Odgers Berndtson to find a successor. Cridland’s contract is due to expire in January. He told the FT he had always intended to follow the lead of his predecessors and serve […]

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BoE creates oversight boards after mortgage system failure

The Bank of England is to strengthen oversight of its payments systems, after a glitch in October prevented borrowers from accessing mortgages.  The Bank’s real time gross settlement system, which allows money to be transferred between banks in real time to fund investment banking and consumer loans, was down for nine hours in October. The fault […]