United Kingdom Presentation

Submitted by Will

UK Bailout

Many people are wandering why the United Kingdom government decided to deposit nearly $ 90 billion into banks, while lending back $ 350 billion to the taxpayers. When it came time to make the final decision, the UK government realized they had no choice. Panic in the markets is at a steady increase, while banking shares have been at a steady downfall. British Prime Minister Gordon Brown, along with the help of Chancellor Alistair Darling, knew that something must be done immediately to bring back the confidence within the banking industry. Urgent action was agreed upon, and a bailout plan was put into action. 

The UK government created a plan that consisted of funding the banks with over $ 90 billion, in exchange for shares, in hopes of reassuring the markets that the credit crunch would be survived. The loans received from the banks would total over $ 350 billion and would be used to stabilize the economy.

Link (submitted by Will)

UK unemployment down

UK unemployment fell by 35,000 to 2.65 million in the three months to February, the first fall in almost a year, official figures have shown. 

The jobless rate was 8.3%, according to the Office for National Statistics (ONS), down from a 12-year high of 8.4% in the previous three-month period. 

The unemployment total for 16-24 year olds was down 9,000 to 1.03 million, taking the unemployment rate for that age group to 22.2%.

Link (submitted by Will)

How much profit will Northern Rock and Bradford & Bingley make for the taxpayer?

UK Financial Investments, which looks after the bailed-out banks on behalf of taxpayers, has produced the first real analysis on how much money might be made on Northern Rock and Bradford & Bingley. It reckons that the "wholly owned" businesses will bring in between £95bn and £97bn – at least £33bn more than was put in. 

As always there is a snag. It could take another 15 years for those sums of money to flow back to the exchequer.

Link (submitted by Will)

Charity tax row: We will stick with policy, says Danny Alexander

The government will stick to its controversial plan to cap tax relief on charitable donations, the chief secretary to the Treasury has said. 

Danny Alexander told the BBC there were "very good reasons" for the cap - to ensure the very wealthy were paying a slice of their income to the exchequer. 

Charities say the cap will hit big donations and have urged a rethink.

Link (submitted by Will)

British Airways and BMI deal puts 1,200 jobs at risk

British Airways owner IAG has said its deal to buy the BMI airline from Lufthansa for £172.5m could result in the loss of up to 1,200 jobs. 

The announcement came as BA began consultations with unions on plans to integrate BMI into its operations. 

IAG, which also owns Spain's Iberia, will gain 56 more slots at Heathrow airport as part of the deal.

Link (submitted by Will)

Seven NHS trusts to get access to £1.5bn bailout fund

Seven English NHS hospital trusts with debts caused, in part, by private finance initiative repayments are to have access to a £1.5bn government bailout fund, it has been announced.
The subsidy will be available over the course of 25-year long contracts.

 Link (submitted by Will)

UK unemployment increases by 118,000 to 2.69m

"UK unemployment rose by 118,000 in the three months to November to 2.69 million, official figures show. 

The Office for National Statistics (ONS) said the unemployment rate also rose to 8.4% from 8.3%, the highest since January 1996."

Link (submitted by Will)

Why the Chancellor wants China's cash

"Perhaps the most important cause of our economic malaise is that for years as a nation we have been living beyond our means, in deficit with the rest of the world, buying from other countries far more than we produce, till our indebtedness became unsustainable.

By contrast China has been consuming far less than it produces, accumulating vast surpluses."

Link (submitted by Will)