Lenders granted 53,504 mortgages, compared with a revised 51,947 in February, while net lending rose £430m, although this was below the average of £600m over the previous three months.
The Banks said earlier this month (April) that the availability of mortgages improved in the first quarter of the year and may increase further in the current period after its Funding for Lending Scheme (FLS) was extended to the end of January 2015.
In fact, most indicators suggest that the housing market has picked up slightly in recent months, although the economy is still slow and confidence in the economy remains fragile.
Meanwhile, according to the Bank’s report, gross mortgage lending fell to £12.5bn in March; with mortgage approvals still being about half the monthly average recorded in the decade to 2007, when the financial crisis struck.
Lending to non-financial businesses shrank for a second consecutive month, by a net £0.6bn. Within that, lending to smaller firms dropped by £0.1bn, erasing the previous month's gain.
Separate data showed that overseas investors increased their holdings of UK government bonds for the ninth consecutive month in March. Non-residents bought £7.5bn more gilts than they sold, after increasing their holdings by £8.3bn in February.
The Bank also said that the UK money supply fell 0.9 percent in March from the previous month, the most since June, while the Banks’ preferred gauge of money supply, M4, excluding intermediate other financial corporations rose 0.3 per cent, taking the annual growth rate to 4.5 per cent.
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
[ add comment ] ( 5 views ) | permalink |
( 3 / 602 )The Financial Conduct Authority (FCA) has given permission for the biggest banks to start paying compensation to small and medium-sized enterprises (SMEs) that were mis-sold derivatives products known as ‘swaps’.
The financial scandal started as far back as 2001 when the banks sold small firms interest rate hedges but failed to warn them that they faced potential hefty costs if interest rates fell.
At the end of June 2012, the FSA, as the FCA used to be called, released its findings from a review that found that 40,000 interest rate swaps (IRS) had been sold in this way to customers.
All the cases will now be investigated for potential mis-selling after the watchdog appointed an independent regulator to each bank to assess how many firms had been affected.
Consequently, having been given the go-ahead, banks will begin the compensation process which is likely to be in the region of £2bn by the time all the businesses have been compensated.
Although by some estimates, the bill to the banking industry for swaps mis-selling could eventually exceed more than £12bn compensation costs for payment protection insurance.
However, there is bad news for the SMEs that were forced out of business as a result of the scandal, as the banks may end up paying themselves the compensation as they are the new owners of the businesses.
This “huge injustice” will be fought by lobbying groups, including Bully Banks, which represents businesses fighting for swaps compensation when senior civil servants in the FCA and at the Department for Business, Innovation and Skills are lobbied on Wednesday (May 1st).
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
[ add comment ] ( 3 views ) | permalink |
( 3 / 486 )A Public Accounts Committee (PAC) report has accused the so-called “Big Four” accountancy firms of using knowledge gained from staff seconded to the Treasury to help wealthy clients avoid paying the right amount of tax.
Calling the practice a “ridiculous conflict of interest” Select Committee Chair Margaret Hodge has called for it to be stopped, saying that the firms have an “unhealthily cosy relationship” with government.
All four firms have provided the Government with expert accountants to help draw up tax laws but according to the PAC, this means that they can advise multinationals and wealthy clients on how to exploit loopholes in the very legislation they helped to write.
One example the report gave was when one of the firms advised on the development of the Patent Box rules and then offered clients a brochure on how to use the new rules to limit their taxes.
MPs on the committee say that they have seen what look like cases of poacher, turned gamekeeper, turned poacher again, whereby individuals, who advise government, go back to their firms and advise their clients on how they can use those laws to reduce the amount of tax they pay.
However, the firms have vehemently denied Mrs Hodge’s accusations and say that the PAC’s report is based on a misunderstanding of what they do and how they do it.
They also stressed that they operate under clear codes of conduct and only provide technical insight to Government, never advice on tax policy and always under strict controls.
Meanwhile Mrs Hodge stands by her accusations and said that the firms’ protestations of innocence fly in the face of the fact that they continue to sell complex tax avoidance schemes with as little as 50 per cent chance of succeeding if challenged in court.
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
[ add comment ] ( 5 views ) | permalink |
( 3 / 522 )Official figures from the Office for National Statistics (ONS) revealed today (April 25th) that the UK economy did not enter recession for the third time since the financial crisis began and in fact grew faster than expected in the first three months of this year.
The ONS said that the country’s gross domestic product (GDP) rose 0.3 per cent in the first quarter, confounding gloomier forecasts of 0.1 per cent or even a backward slide.
In fact, year-on-year, GDP was 0.6 per cent higher, the strongest rise since end of 2011 with the cause of the rise being attributed to strong growth in the services sector and a recovery in North Sea oil and gas output.
Services rose 0.6 per cent in the first quarter from the previous three months, boosted by distribution, hotels and restaurants. In addition, production increased by 0.2 per cent, led by a 3.2 per cent surge in mining and quarrying, while construction dropped by 2.5 per cent.
The figures also showed that the impact of the cold winter was not as bad as feared, with weather-hit trading on the high street offset by a boost in energy demand as households turned up their heating.
The Chancellor, George Osborne, was delighted with the news, claiming that the figures show the Government is making progress and that the economy is healing.
Although Mr Osborne also admitted that there are “no easy answers” to the economic problems and added that he could not promise that the road ahead will always be smooth. However, the figures will have relieved some of the pressure he has been under to rethink his austerity policy.
The pound soared against the dollar on the back of the data, rising at least 0.7 per cent within minutes of the 09.30 announcement and up 0.9 per cent from yesterday (April 24th).
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
[ add comment ] ( 4 views ) | permalink |
( 2.9 / 583 )A new report has revealed how the UK’s small firms could be the key to getting the economy back on its feet, but only if they can realise their full potential and catch up with their international counterparts.
The report, entitled Stimulating Small Business Growth, produced by Saïd Business School, Aston Business School, Leeds University Business School, Manchester Metropolitan University Business School and the University of Central Lancashire, examines the rise of the first 250 high growth small businesses to have completed an intensive four-month programme.
The initiative is designed for leaders of established small businesses who want to grow quickly and the report looks at how it is helping them grow jobs and turnover.
Results show that 77 per cent of the businesses surveyed reported that they were employing more people than in the previous year, while 66 per cent had increased their turnover and over half had increased profitability.
In addition, 92 per cent said that since participating in the programme, they were more confident in their ability to grow their business, which the programme originators claim is illustrative of what can be done against a background of sluggish economic growth.
Meanwhile, a separate survey of SMEs shows that almost 80 per cent believe that technology is vital in their plans for growth, which despite the economic climate, are ambitious.
Almost two-thirds of those surveyed expect their businesses to grow this year, with one in 10 firms setting growth as their number one goal.
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
[ add comment ] ( 7 views ) | permalink |
( 3 / 561 )
Random Entry
