Abacus Daily Debt News

Britain’s current economic crisis is the fault of the government and financial institutions, according to one expert.

David Amstell, founder of property portal Briffy.com, said the UK is unlikely to see any sort of sustained recovery over the next year.

He remarked: "The government has got us in a very big hole now - between the banks and the government anyway."

Commenting on recent Nationwide figures that suggest confidence could be returning to the property market, Mr Amstell noted that "money is still tight" and there is no real reason why people should be more optimistic.

"I think there is a long way to go," he explained, adding that current house price increases could be nothing more than a seasonal trend.

Businesses like Allied Carpets going bust are indicators that the recession is still prevalent, the housing specialist stated.

The Nationwide Consumer Confidence Index published yesterday (August 5th), showed that property value expectations are the highest level seen for over one-and-a-half years.

By Francis Finch

People in the UK are already paying too much council tax and the government should be doing all it can to alleviate the financial burden, one specialist has claimed.

Mark Wallace, campaign director for the Taxpayers’ Alliance, said that during difficult economic conditions tax hikes are the "last thing" individuals need while facing redundancies, pay cuts and wage freezes.

He remarked: "It would be far more efficient to stimulate the economy by reducing the tax burden and leaving the money in people’s pockets in the first place."

His comments come after a story published on the Public Service website stated that state pensions could see radical reforms, with council tax increases raised as one change that could be implemented.

Brits have seen their council tax bills double in the last decade and local authorities should be looking to reduce costs to the taxpayer, Mr Wallace added.

The final salary pension scheme is "outdated and all but extinct", he stated, with the best option being to base it on employee contributions like in other sectors.

By Francis Finch

Banks are introducing more saving account products into the market providing interest levels over the Bank of England base rate of 0.5 per cent in order to gain customers, one expert has suggested.

At the end of June, over half (55.3 per cent) of the 2,265 savings accounts had interest levels more than the base rate, according to the most recent edition of the monthly Moneyfacts Treasury Report on UK savings.

Darren Cook, an analyst contributing to the publication, said 32 of the 34 new offerings that were available in June paid higher levels of interest.

He remarked: "Providers are asking their savers to commit their money for a much longer period, and the only way they can do this is by offering premium rates in return."

The Bank of England base rate was set at its current level in March 2009, with the next Monetary Policy Committee meeting due to take place on Thursday (August 6th).

By Francis Finch

The number of people getting into debt due to rising unemployment levels could go up, one expert has suggested.

According to a recently published study by the Centre for Economics and Business Research and TaxPayers’ Alliance, those without a job could total 3.8 million individuals by 2017-18, with national debt reaching £2.34 trillion in the same year.

Director of the National Institute of Economic and Social Research Martin Weale admitted that while he was more optimistic for the UK economy, the figures could be correct.

He remarked: "It could mean that the economy shrinks by more than most forecasters are expecting … The key point is this could happen."

The government has made efforts to aid fiscal expansion and support the banks, Mr Weale added, but this may turn out to be futile.

Even if the recession were to end, he stated, people should not necessarily assume this leads to an instant recovery.

By Francis Finch