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  • #1

    The British Scum are running out of options.....

    Telegraph.co.uk



    Saturday 04 January 2014





















    1. Home»
    2. Finance»
    3. Personal Finance»
    4. Borrowing»
    5. Mortgages





    Business lending slump deepens, as mortgage approvals hit fresh high

    Slump in business lending deepens in November, even as British banks approve highest number of mortgages in five years

    Howard Archer, chief UK economist at IHS, said the data suggested that banks "have yet to become markedly more prepared to lend to businesses amid the improved economic situation and outlook". Photo: PA









    By Denise Roland

    10:51AM GMT 03 Jan 2014
    144 Comments


    The slump in business lending has deepened, it has emerged, further sharpening the contrast with a surging mortgage market.


    Companies took £4.7bn less in loans in November, the biggest drop in more than two years and nearly five times the recent average monthly decline of £1bn, according to figures from the Bank of England. The slide was due to a fall in lending to large businesses, as loans to small and medium-sized companies actually edged up slightly.


    Economists are split over whether the decline is due to weak demand for bank finance or lenders’ reluctance to grant loans to business.


    Howard Archer, chief UK economist at IHS, said the data suggested that banks “have yet to become markedly more prepared to lend to businesses amid the improved economic situation and outlook”. But Blerina Uruçi, economist at Barclays, believes businesses are unlikely to be held back by weak bank finance as the corporate sector has amassed a large cash surplus in recent years. Businesses are also increasingly turning to the bond market as a cheaper alternative.


    Mark Carney, governor of the Bank of England, has redoubled efforts to boost business lending by making it the sole beneficiary of the Funding for Lending Scheme, which allows lenders to borrow at rock-bottom rates in exchange for providing loans. Previously, the scheme applied to all loans.

    Related Articles



    Meanwhile, mortgage approvals continued to rise, hitting a new five-year high of 70,759 in November.
    The acceleration of mortgage lending, even as business loans decline, has led to worries that Britain’s recovery, which puts it on course to be one of the fastest growing developed economies this year, is unsustainable.

    Concerns that government schemes to boost the housing market are creating a bubble were renewed yesterday (Fri) when Nationwide said prices staged their highest monthly increase in four years in November.

    House prices rose 1.4pc in December, bringing the year-on-year increase to 8.4pc.
    Initiatives for boosting mortgage lending, such as the Help to Buy scheme, remain in place, despite fears that government efforts to boost the housing market could fuel a bubble.
    However the Bank of England has been tasked with monitoring the scheme and given powers to recommend changes if it detects signs that a housing bubble could be developing.
    Tags: None
  • #2
    Re: The British Scum are running out of options.....

    Let me spell it out.

    The British real econmery is about to "Flame out" the SCUM whom run things have tried EVERYTHING...the only trick left is a house price bubble. Outside London its not working even after GIVING 95% loans on MEGA low rates, everything is about to crash....Again.

    They spent 2013 asset stripping, selling off & loading up the NHS with debt, they sold the Student loan book for a song & effectly robbed the Post office workers of their pensons by "Taking it under Goverment control"...then sold off the last parts of the Post office itself.

    It reminds me of that film "Round the World in 80 days".......The bit were the ship has run out of coal, so they strip the ship of anything they can burn to get into port of time......even the deck planks.

    I think we there now, i think they run out of tricks, scams, side steps etc.....They need to get to 2015, i think by June they be done....
    Mike

    Comment

    • #3
      Re: The British Scum are running out of options.....

      Think i am wrong?
      http://legalaidandme.proboards.com/t...0923=undefined

      Comment

      • #4
        Re: The British Scum are running out of options.....



        Dead by June! Dead by June!

        Comment

        • #5
          Re: The British Scum are running out of options.....

          Mega, I don't think you are wrong. The UK Government deficit is too low to get the UK economy out of its sink hole. They think bank lending will get the economy out of the hole. It won't! It never does!

          Comment

          • #6
            Re: The British Scum are running out of options.....

            Originally posted by Mega View Post
            Think i am wrong?
            http://legalaidandme.proboards.com/t...0923=undefined
            Well at least Cameron isn't looking for non-existent Weapons of Mass Destruction in some sandbox country to justify the upcoming bombing...unlike Tony (B)liar.

            Comment

            • #7
              Re: The British Scum are running out of options.....

              Originally posted by Mega View Post
              Think i am wrong?
              http://legalaidandme.proboards.com/t...0923=undefined
              At the moment yes I think you're wrong. I don't anticipate a house price crash in the near future.Housebuilding has been declining since 1970 and is now at an 80 year low yet the last decade we have had the fastest population increase in this country ever. There is a genuine shortage of housing in the UK. When this is allied with government policies aimed at supporting house prices by any means along with foreigners buying up UK real estate as an inflation hedge/bolthole there will be no crash. Desirable areas will continue to rise.
              The powers that be will encourage wage inflation rather than allowing houses to decline in the future. Expect big debates in the media on "paying a living wage" etc. Minimum wage will rise soon after which will just end up supporting house prices but not result in extra spending power. Interest rates will then be allowed to rise meaningfully.
              The main risk to this assessment is how the LibDems react and whether they are prepared to break up the coalition to avoid a pre-election boom. If the coalition does crack then all hell will break loose but I wouldn't bet on Nick Clegg going down that route.

              Comment

              • #8
                Re: The British Scum are running out of options.....

                Originally posted by llanlad2 View Post
                At the moment yes I think you're wrong. I don't anticipate a house price crash in the near future.Housebuilding has been declining since 1970 and is now at an 80 year low yet the last decade we have had the fastest population increase in this country ever. There is a genuine shortage of housing in the UK. When this is allied with government policies aimed at supporting house prices by any means along with foreigners buying up UK real estate as an inflation hedge/bolthole there will be no crash. Desirable areas will continue to rise.
                The powers that be will encourage wage inflation rather than allowing houses to decline in the future. Expect big debates in the media on "paying a living wage" etc. Minimum wage will rise soon after which will just end up supporting house prices but not result in extra spending power. Interest rates will then be allowed to rise meaningfully.
                The main risk to this assessment is how the LibDems react and whether they are prepared to break up the coalition to avoid a pre-election boom. If the coalition does crack then all hell will break loose but I wouldn't bet on Nick Clegg going down that route.
                Well that didn't take long did it? The Conservative Party Chancellor calls for an inflation busting 10% rise in the minimum wage. Who'd a thought it?



                George Osborne has called for a significant rise in the minimum wage to compensate low-income workers for the economic crisis.

                Pushing up wages will “make sure that we have a recovery for all and that work pays,” the Chancellor said in a move apparently aimed at Labour voters.

                It comes days after Ed Miliband, the Labour leader, said he would “rescue the middle classes”.

                Mr Osborne’s support for higher wages last night drew warnings from business groups that increasing employers’ costs could result in job losses and hamper the economic recovery.

                The shift in Conservative thinking is intended to appeal to voters in marginal constituencies who will decide the outcome of next year’s general election.





                The timing of Mr Osborne’s announcement is aimed at overshadowing a major economic speech on Friday by Mr Miliband.
                Prices have been rising faster than wages, meaning that the real value of the minimum wage has been falling since 2008. Mr Osborne said that he wants the wage to return to the same real value it had before the recession.
                The nascent recovery means that Britain can now “afford” to pay higher salaries, Mr Osborne said, announcing that he has asked the Low Pay Commission, which oversees the minimum wage, to consider the case for the minimum wage.
                “Just as we were all in this together in the crisis, I want to make sure we’re all in this together in the recovery,” the Chancellor said. “Because we’re working through our plan, I believe Britain can afford above-inflation increases in the minimum wage.” Business groups warned that increasing wages could do economic harm.
                The CBI, the employers’ organisation, said that an “unaffordable rise would end up costing jobs” and said the commission should make the final decision. The Institute of Directors said that higher wages were “risky” and could lead to job cuts, especially within small firms.
                Labour accused Mr Osborne of “flailing around under pressure” over the cost of living. But the Trades Union Congress welcomed the move.
                The Chancellor did not suggest a new level for the wage, but his officials have been studying the implications of an increase from the current level of £6.31 an hour to £7 by 2015.
                Some economists have suggested that increasing the minimum wage would deliver a windfall for the Treasury, as workers would pay more income tax and claim less in benefits.
                However, the Treasury calculated that a £7 wage would be revenue-neutral because a fall in company profits would offset tax gains from workers.
                Mr Osborne, who has called for more cuts in benefits spending after the election, poured cold water on the idea that higher wages were a substitute for welfare reform. He said: “Let’s just look at the case for an increase in the minimum wage on its merits, whether it’s right for the British economy, not because we think it’s some quick fix for the bigger issue of how you have a welfare system that is affordable and where work pays.”
                The Conservatives opposed the Blair government’s creation of the minimum wage in 1999, and some Tories remain unconvinced of the need for a rise.
                However, a growing number of Conservatives believe that action on wages is needed to win support among low-income voters who will decide the election result in many marginal constituencies in the North and Midlands.
                The Coalition has also faced sustained attacks from Mr Miliband over the rising cost of living and the squeeze on real wages, with Labour accusing Conservative ministers of being insensitive to the plight of workers.
                The rate of inflation is expected to fall back below average wages rises this year. Mr Miliband will on Friday move to shift his argument on living standards, insisting that the “crisis” is about more than wage levels.
                The Labour leader will insist that “a few months of better statistics” will not be enough to reverse the fall in the real-terms value of incomes in recent years.
                He will also seek to recast his argument to suggest that the big problem is not a fall in overall wealth but an unfair distribution of wealth, low job security and the rising cost of housing.
                “This Government thinks it is all going to be OK because this year the forecasts say that average wages will eventually overtake prices. Let’s hope that happens,” he will say. “But I really warn this Government: if they think a few months of better statistics will solve this crisis, they are just demonstrating again that they have absolutely no idea about the scale of the problem or the solutions required.”
                The Conservative move on wages also strained Coalition relations, as the Liberal Democrats accused the Tories of an about-turn. Lib Dem sources said that the Conservatives blocked a Coalition move to push up the minimum wage last autumn.
                Vince Cable, the Business Secretary, said on Thursday night: “I’m delighted to have the Chancellor’s endorsement of the position I set out back in September.”

                Comment

                • #9
                  Re: The British Scum are running out of options.....

                  "They" want inflation, "They" need it at ANY price...........
                  Mike

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