On-Money

The Chancellor of the Exchequer, Alistair Darling today insisted that the UK economy was facing “unique pressures” from the credit crunch plus the rise in oil and food prices, as he attempted to clarify his appraisal that the global economic conditions were the worst for 60 years.

In a television interview to explain his comments made in a newspaper earlier this week about the grave state of the economy, the chancellor said the government had to help people. “We are facing a profound economic downturn along with every other country in the world,” Darling said.

“The difference is between us and previous governments is that we are taking action to help people – whether it is rescuing Northern Rock, or helping people to get back into work as they lose their jobs, or tax rebates which are due at the end of September.”

Darling insisted that the government would “help” people hit by the crisis, and played down rumours of tension with senior ministers.

“All my colleagues, the prime minister, every single one of us, are focused on one single thing – that is helping people, helping the economy go through what is a very difficult time. “

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Charles Bean, the Bank of England’s deputy governor warned that the downturn was as bad as in the 1970s and that everytime things looked up as if they were going to improve, a setback occurred. At Christmas 2007 he said that he had thought that things were past the worst but since then things had deteriorated.

He predicts that if the oil prices stabilised, along with credit markets then growth should pick up and inflation start to fall. And he suggested that the current UK standstill in growth was only temporary.

Popularity: 73% [?]

Beggars in central London are taking home up to £280 a day from soft- hearted shoppers and commuters.

The average figure for beggars is £55 a day, more than a workers average earnings. Those who earn £280 a day are on a similar income to Head Teachers and GPs.

A quarter of people give in the belief that they are helping to provide for bed and food. But in fact, research has shown that 60% of beggars are not homeless, and 70% of those arrested test positive for Class A drugs, such as heroin, crack, or cocaine.

Shoppers and commuters are being asked to donate money to charities which help the homeless instead of giving to beggars.

Popularity: 66% [?]

Millions of households across Britain will pay more for their water in the coming weeks.

From April the average bill for each household for water and sewage services will increase by 7% to £312.

It is thought that those using South West Water, the most expensive in the country, will see their bills rise by 13.7%, bringing the average bill to £483.

It has been said that the extra money will be put towards maintaining pipes, sewers and treatment works, also connecting £1 million new properties to the network and preventing or reducing flooding from 'high risk homes'.

For years the water companies have been running a sub-standard service and now customers are being forced to bail them out.

Popularity: 94% [?]

MPs voted to award themselves an extra £6.5 million of taxpayers' money. It will come into effect from next month.

Every MP will be entitled to claim an extra £10,000 a year to 'communicate' with their constituants.

But in fact the money will allow politicians to pay for letters and glossy campaign leaflets at the General Election.

MPs already cost the taxpayer £86.7 million in expenses and office allowances, including £5 million on travel. Their £60,000 annual salaries cost taxpayers a further £39 million

With these extra costs it brings the total that MPs cost the public purse to £132.2 million.

Popularity: 2% [?]

What Is It?

A virtual shopping basket, containing 650 goods and services, which represent a cross-section of widely purchased goods.

Prices are collected every month at 150 points all over Britain, and aggregated into two main measures, the Consumer Prices Index, and the Retail Prices Index. The figures are used to generate the national inflation rate.

What's In It?

It's contents change once a year, giving an insight into Britains spending habits. Among the updates announced recently olive oil replaced vegetable oil, brocolli replaced Brussel sprouts, and Brie was kicked out in favour of pro-biotic drinks.

Popularity: 1% [?]

The number of households facing a choice between heating or eating has doubled in the last 2 years.

Large increases in gas and electricity bills have left nearly 4 million families having to spend at least 10% of their disposable income on heating and lighting, the definition of 'fuel poverty'.

For thousands of people the prospect of a warm comfortable home is now a luxury that they cannot afford.

Older people are particularly at risk as they are worried about the cost of running their heating in the winter, and are more prone to contacting cold-related illnesses.

Popularity: 3% [?]

Even though Ministers decided not to go ahead with the home surveys, a report published yesterday reveals that Ruth Kelly the Communications Secretary believes that ultimately the full surveys will come into force.

The Government backed down on plans to introduce £1,000 home information packs containing extensive surveys, after widespread opposition last year.

Instead a watered-down version will be introduced from June1, when sellers will have to pay about £100 for an Energy Performance Certificate giving the property a 'green rating'.

Popularity: 1% [?]

Senior staff at the upmarket Savills agency are enjoying city-style bonuses after the company announced record profits.

A bonus pool of £125 million is being shared among 4,000 employees. Most of it is expected to go to those already earning high salaries.

The company warned that as the allocation of bonuses is discretionary, some employees would receive nothing.

The higher than expected increase in profits of 31% ,have been fueled by the bumper round of City bonuses, which have helped boost the average house price in central London by 10% to £1.45 million.

Popularity: 1% [?]

From today, the face of Adam Smith replaces that of Edward Elgar on the $20 note, despite the fact that three quarters of Britons have no idea who he is.

Smith was an 18th- century philosopher and political economist, who played a key role in the intellectual movement known as the Scottish Enlightenment.

In a recent poll conducted by Virgin Money, Churchill won the vote with 52% among male contenders, with Professor Stephen Hawking in 2nd place with 8%.

On the female list the top contender was Emmeline Pankhurst, one of the founders of the British Suffragette movement.

Surprisingly the late Princess of Wales did not come out on 1st place.

Popularity: 6% [?]

The minimum wage is to increase by 17p to £5.52 an hour, an increase of 3%

The rate for 18 to 21 year olds will rise 15p to £4.60 an hour, while for 16 to 17 year olds it goes up 10p to £3.40.

Dave Prentis of the health union Unison, said that the adult rate should have been set at a minimum of £6 an hour.

But John Cridland of the Confederation of British Industry, was in favour of the governments restraint with the increases.

Popularity: 1% [?]

British Gas has agreed, after growing pressure, to scrap its controversial £5 late payment fee.

The company, which has lost a million customers over the past year, was attacked by consumer groups for introducing the outrageous charge.

The fee would have applied from March 1st, to customers who pay by cheque or cash and who do not settle their bills within 28 days.

Approximately 6 million British Gas customers pay their bills this way, with the remainder paying by direct debit.

Popularity: 24% [?]