Critics say it’s a credibility gap, Darling
The adage that ‘‘the devil is in the detail’’ is never more true than of a government’s annual budget statement. The immediate reaction of media pundits and economic observers is based on the headline grabbing rises and cuts in taxation or expenditure. It’s only in the days that follow that a true picture of the impact on the economy can be gauged.Alistair Darling’s second budget began with the hype over the introduction of a 50p tax rate for high-earners and questions about his predictions on the speed of the recovery from recession. But these issues have since been superseded by claims of ‘‘the death of New Labour’’ and outrage that it will be more than two decades before Britain returns to pre-bank-bailout levels of debt.
British pound falls against majors;
hits new multi-week low versus yen
The British pound showed weakness against its major counterparts on disappointing economic reports released from UK. The pound declined to a new multi-week low against the Japanese yen and a 4-day low versus the US dollar. House prices in the UK fell 0.3% month-on-month in April, by the slowest pace in a year, a report by property consultants Hometrack said today. The report said the slower pace of decline in prices reflected a rise in optimism from estate agents due to increased levels of market activity. Year-on-year, house prices were down 10.1% in April.The British economy is likely to contract 4% this year and will shrink another 1% in the next year, reports said today citing Roger Bootle, an economic adviser at Deloitte & Touche LLP and managing director of Capital Economics.
hits new multi-week low versus yen
The British pound showed weakness against its major counterparts on disappointing economic reports released from UK. The pound declined to a new multi-week low against the Japanese yen and a 4-day low versus the US dollar. House prices in the UK fell 0.3% month-on-month in April, by the slowest pace in a year, a report by property consultants Hometrack said today. The report said the slower pace of decline in prices reflected a rise in optimism from estate agents due to increased levels of market activity. Year-on-year, house prices were down 10.1% in April.The British economy is likely to contract 4% this year and will shrink another 1% in the next year, reports said today citing Roger Bootle, an economic adviser at Deloitte & Touche LLP and managing director of Capital Economics.
British GDP falls more than forecast
Residents of Great Britain have been told GDP will plunge by 4.5 percent in 2009, the largest one-year fall since 1931. Britain has been urged to take more forceful measures against the economy falling much deeper than expected. Economic forecasters have confirmed gloomy assessments of prospects for the British economy following the release of the GDP growth figures.The newest figures are in sharp contrast to the figures given by British Chancellor of the Exchequer, Alistair Darling, in his 2009 budget, when he forecast GDP would shrink by only 3.5percent. Opposition figures have used the GDP numbers to accuse the government of being frivolous with public spending. Britain's unemployment now stands at nearly 2 million and many predict it could reach 3 million by the end of 2009.
Residents of Great Britain have been told GDP will plunge by 4.5 percent in 2009, the largest one-year fall since 1931. Britain has been urged to take more forceful measures against the economy falling much deeper than expected. Economic forecasters have confirmed gloomy assessments of prospects for the British economy following the release of the GDP growth figures.The newest figures are in sharp contrast to the figures given by British Chancellor of the Exchequer, Alistair Darling, in his 2009 budget, when he forecast GDP would shrink by only 3.5percent. Opposition figures have used the GDP numbers to accuse the government of being frivolous with public spending. Britain's unemployment now stands at nearly 2 million and many predict it could reach 3 million by the end of 2009.
British Property Prices Seen Falling
Two large British property companies warn of the ongoing impact of the credit crisis on the residential and commercial markets
The global credit crisis has already had a serious impact on both the residential and commercial property markets and the problems will continue, two of Britain's biggest property companies warned yesterday.
Bovis Homes, the housebuilder, said it expected its average sale price for 2007 to be 3 per cent lower than a year ago, while Liberty International, the real estate investment trust, warned investors' appetite for commercial property was showing signs of waning.
Bovis, the UK's fifth-largest housebuilder, warned that consumer confidence had been damaged by turmoil in the financial markets. "People have become nervous," said Malcolm Harris, the company's chief executive. "What we need is for the market to return to normality and people to get their confidence back."
Two large British property companies warn of the ongoing impact of the credit crisis on the residential and commercial markets
The global credit crisis has already had a serious impact on both the residential and commercial property markets and the problems will continue, two of Britain's biggest property companies warned yesterday.
Bovis Homes, the housebuilder, said it expected its average sale price for 2007 to be 3 per cent lower than a year ago, while Liberty International, the real estate investment trust, warned investors' appetite for commercial property was showing signs of waning.
Bovis, the UK's fifth-largest housebuilder, warned that consumer confidence had been damaged by turmoil in the financial markets. "People have become nervous," said Malcolm Harris, the company's chief executive. "What we need is for the market to return to normality and people to get their confidence back."
British Property Federation offers retailers new lifeline
The British Property Federation (BPF) has written to 400 landlords asking them to make every effort to contain their service charges to help struggling retailers and other business tenants.
A letter from Francis Salway, president of the industry body, who is also chief executive of Land Securities, the country's biggest property company, asks property companies and investors to manage costs “as if they were their own”.
Mr Salway tells the landlords: “There is a growing sense of dissatisfaction amongst the customer community, particularly in the retail sector, regarding the level of service charges and the way in which they are managed.
“The issue is one area where we can show that we are very much alert to the concerns of our customers in these challenging economic times.”
Mr Salway suggests that landlords should price-test all contracts, defer non-essential maintenance, review marketing budgets for shopping centres and be transparent over insurance costs to keep their service charges as low as possible for tenants. He adds: “The BPF's effectiveness as a lobbying organisation is dependent partly upon our members showing themselves to be mindful of the needs and concerns of the customers of our industry.”
The British Property Federation (BPF) has written to 400 landlords asking them to make every effort to contain their service charges to help struggling retailers and other business tenants.
A letter from Francis Salway, president of the industry body, who is also chief executive of Land Securities, the country's biggest property company, asks property companies and investors to manage costs “as if they were their own”.
Mr Salway tells the landlords: “There is a growing sense of dissatisfaction amongst the customer community, particularly in the retail sector, regarding the level of service charges and the way in which they are managed.
“The issue is one area where we can show that we are very much alert to the concerns of our customers in these challenging economic times.”
Mr Salway suggests that landlords should price-test all contracts, defer non-essential maintenance, review marketing budgets for shopping centres and be transparent over insurance costs to keep their service charges as low as possible for tenants. He adds: “The BPF's effectiveness as a lobbying organisation is dependent partly upon our members showing themselves to be mindful of the needs and concerns of the customers of our industry.”
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