Osborne insists a change of course would be 'catastrophe'

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Osborne insists a change of course would be ‘catastrophe’

How to plan for the Autumn Statement
Tim Gregory provides a detailed summary of the changes to be expected ahead of this week’s Autumn Statement.
City AM London, p. 23

Germany’s small banks fight shake-up
FT series looks at how savings lenders could play a decisive role in determining the nature of EU reform.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 6

Responding to the threat of cuts to pension tax relief
As George Osborne prepares for his much-anticipated Autumn Statement, rumours abound that he will cut pensions tax relief for higher-rate earners.
City AM London, p. 23

PwC: Stop tinkering with tax relief on pensions
ANY move in the Autumn Statement to cut tax relief on pensions contributions or tax the lump sum could hurt savers on modest incomes and put younger workers off saving altogether, pensions analysts warned yesterday.
City AM London, p. 4

Austerity drive will go on until 2018, hints Osborne
Austerity measures will have to continue until at least 2018, George Osborne signalled yesterday – as he finalised plans for a pensions raid on the better off and a fresh round of benefit cuts.
Daily Mail, p. 10

FAILED
George Osborne was forced to admit yesterday that he was way off target in cutting Britain’s debt burden.
Daily Mirror, p. 2

Osborne insists a change of course would be ‘catastrophe’
George Osborne has admitted that his plan to eliminate Britain’s deficit was off track but insisted that a change of course in Wednesday’s Autumn Statement would be “a complete catastrophe for Britain”.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 2

A cast iron pensions promise turns up heat on Aga
Small Talk comment on Aga Rangemaster’s pension scheme and the latest monitor which showed that only 40 per cent of SMEs had external financing in the third quarter.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 20

Experts question PPI over pensions
Thirty pension experts from around the world have written a letter to a UK thinktank to question its support for the UK Treasury’s method of calculating the future cost of public sector pensions.
This abstract from the Financial Times was produced by Kantar Media
Financial Times FT fm, p. 2

Chancellor may limit pension tax relief to £30,000
The amount of money people will be able to pay into their pension pots without paying tax on it could be slashed by up to a third as part of a £1.
Independent i, p. 6

Time for Exchequer to play Robin Hood
George Osborne has his hands tied. Mr. Osborne, Britain’s chancellor of the Exchequer, wants to re-energize a flat economy but is trying to balance that with the need to cut spending to meet debt-reduction goals.
International Herald Tribune, p. 22

Osborne: I’ll make the rich pay their fair share
The rich will be forced to shoulder more responsibility for cutting the country’s deficit, George Osborne said yesterday. There will be no launch of the so called mansion tax but the wealthy will instead suffer a fresh raid on pensions, the chancellor revealed. An additional £600 million could be raised by cutting the threshold for tax relief on retirement funds by £10,000 to £40,000. Former chancellor Alistair Darling said Mr Osborne was suffering a ‘bankruptcy of ideas’ – and needed to spark recovery by targeting employment, infrastructure, transport, energy and housing. ‘Unless you do that, your welfare bills will continue to climb,’ he told Sky News.
Metro London, p. 7

Osborne is still spending more than we can afford
Comment on the difficulty Chancellor George Osborne is facing in reducing the UK Public deficit. The expected search for greater revenue by raiding the pensions of the wealthy and an attack on tax avoidance risk alienating the wealth creators.
The Daily Telegraph, p. 25

WILL HE STILL BE SMILING ON WEDNESDAY?
Columnist Jeremy Warner expects the Chancellor’s Autumn Statement to contain an admission that the fiscal squeeze on public finances will continue to 2018.
The Daily Telegraph, p. 23

Tax raid puts final salary pensions under threat
With Chancellor George Osborne said to be considering reducing the cap of £30,000 on annual individual pension contributions. Joanne Segars, the chief executive of the NAPF suggests that the move will hit those on annual incomes of £40,000. Chris Noon, a partner at financial advisor Hymans Robertson said that a number of unnamed big companies will consider closing their defined benefits schemes if the allowance is cut to £30,000.
The Daily Telegraph, p. 4

Mansion tax Osborne may limit pension tax relief to £30,000
Part of its £1.8bn raid on tax relief, the Government plans to slash the amount of money people are able to pay into their pension pots without being taxed by a third.
The Independent, p. 4

NHS pension age
Letter about NHS pensions from Dr Mark Porter (Chair, BMA Council); Dr Peter Carter (Chief Executive, Royal College of Nursing), and others.
The Times, p. 27

Reforms ‘to hit credit pipeline’
According to law firm Allen & Overy, new regulation will hamper the ability of investment funds, insurers and asset managers to provide the world economy with alternative sources of credit.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 18

Miscalculations mount for U.S. housing
NEW YORK Do we have another Fannie or Freddie on our hands ? another mortgage giant headed for a rescue?
International Herald Tribune, p. 21

Lawyers warn planned regulations on shadow banks could result in a renewed credit crunch
Investment funds and insurers could become a major new source of credit, particularly in the loan starved European economy – but finance regulators risk choking off the flow of funds with heavy handed new rules, law firm Allen and Overy warns in a new study published today.
City AM London, p. 6

Europe’s wealthy firms look to spend on acquisitions in 2013
Financiers at Deutsche Bank believe that businesses across the Eurozone are in a generally better position than their economies and governments, and will likely spend part of their cash piles on acquisitions over the next year.
City AM London, p. 10

Uncertain foundations
China’s shadow banking system could amount to nearly 50 per cent of GDP. Debate is raging about the effectiveness of how it is regulated.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 9

UBS is one thing, Barclays is another
Letters – Brian Scott-Quinn, Chairman and Director of Banking Programmes, ICMA Centre, Henley Business School, University of Reading, addresses calls for Barclays to sell off its investment banking operations.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 10

Loan moan
Comment on the Landesbanken, where many regional savings bank associations are co-owners.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 6

A warning flag for Britain’s banks
Leader column comment on how the Financial Policy Committee of the Bank of England has raised its warning flag for the British banking sector.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 10

One more chance for Osborne to change course
Comment on the chancellor and his Autumn Statement, from Robert Skidelsky, emeritus professor of political economy at the University of Warwick.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 11

BoE looks eastwards for inspiration on lending
Feature looks at how the Bank of England’s latest policy fix is similar to something Japan tried more than a decade ago.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 3

Japanese bank chief highlights risk from huge JGB exposure
The risk facing Japan’s banks from their vast holdings of government bonds has been underlined by Nobuyuki Hirano, chief executive of Bank of Tokyo-Mitsubishi, who said it would struggle to reduce its exposure.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 1

France targets UK euro trade supremacy
France’s central bank governor has said that the City of London should be deposed as the euro’s main financial centre so the single currency club can “control” most financial business in the eurozone.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 1

Syndicated bank loans in eurozone slump to 10 year low
According to data from Dealogic, lending by bank syndicates to companies in the eurozone has fallen to the lowest in a decade as pressure on the region’s financial institutions speeds a structural shift towards capital market funding.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 15

PPI processing outsourced to keep pace with demand
It is reported that about a dozen companies processing PPI claims on behalf of banks have moved at least part of their administrative functions to India to cut costs and keep pace with demand.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 20

HSBC to start selling £25m of toxic US debt
HSBC is preparing its first sale of sub-prime loans since the height of the financial crash, as Britain’s largest bank begins to off-load more than $40bn of toxic US debt it still holds on its books.
The Daily Telegraph Business, p. 1-3

RBS unveils ten-year plan to move away from State’s grip
Royal Bank of Scotland has predicted that it will take ten years to fully return to the private sector.
The Times, p. 37

Bank backtracks on fees
Bank of America has dropped plans for fees that could have hit over ten million current account customers.
The Times, p. 37

We need to put the past behind us and get the special relationship right
Only a few months ago, talk of a special relationship between the US and the UK would have provoked some quizzical looks among many in the City.
City AM London, p. 20

The Chancellor can stick to his debt target by following Canada’s lead
On Wednesday the Chancellor will announce whether he plans to stick to the government’s pledge that debt will fall as a share of gross domestic product (GDP) by 2015/16. Worse than expected growth forecasts make it more – not less – vital that he sticks to that plan.
City AM London, p. 20

Investment advisers set to miss standards deadline
A poll of more than 2,000 financial advisers by the Personal Finance Society, has found that thousands of investment advisers in the UK are set to miss a crucial deadline for new professional standards.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 16

JPMorgan launches ‘f lex’ share
JPMorgan has become the first fund manager to adopt a new mechanism allowing it to maintain a constant €1-ashare net asset value even if short-term yields move into negative territory. The strategy comes after the European Central Bank cut the interest rate on its deposit facility to zero in July. As many as 10 other money market fund managers are in discussions with regulators about introducing similar arrangements.
This abstract from the Financial Times was produced by Kantar Media
Financial Times FT fm, p. 2

Analysis Why more jobs may reflect hard times for workers
The Guardian’s economics editor, Larry Elliott, analyses the state of the economy, claiming that a rise in employment does not necessarily signal an improving economy in Britain, as median earnings have failed to keep pace with economic growth as measured by GDP. He supports the calls for a national investment bank to replace a policy of supply-side economics that appears to be failing, and claims that rising wages would benefit the economy as a whole, if only business had a reason to increase them.
The Guardian, p. 31

Why a bad year is about to get worse for Osborne
The Guardian’s Economics Editor, Larry Elliott, discusses the political and economic obstacles that face George Osborne ahead of this week’s Autumn Statement.
The Guardian, p. 1-6-7

More austerity, cuts and tough choices – or total catastrophe, Chancellor warns
Benefit claimants and wealthy savers are to bear the brunt of an extra year of austerity, George Osborne indicated yesterday. He is expected to use the Autumn Statement to approve a new regime of tax cuts for companies wanting to explore shale gas reserves.
The Times, p. 8-9

Banking & finance
City lawyer Allen & Overy warned that financial regulation will force banks to hire 70,000 extra compliance officers in Europe while stifling the flow of credit to the real economy.
The Times, p. 40

‘More outsiders like Carney are needed to oversee City’
A Policy Exchange report says that the Chancellor needs to appoint more outsiders with financial markets’ experience to beef up the Bank of England,’s work
The Times, p. 41

The above articles appeared on 03/12/12 reproduced with the kind permission of Kantar Media UK. All rights reserved.

Charterbridge Private Financial Planning, Independent Financial Advice, Thornbury, Bristol.