Thursday, 6 January 2011

The strength of sterling is a major issue for most businesses and households. As the pound has dropped in value against other major currencies like the dollar and euro, travelling abroad has become much more expensive. Imported goods have also pushed up basic prices for British firms and consumers. UK exporters, however, have welcomed the weaker pound as it makes their goods cheaper to foreign markets.

Wednesday December 1, 2010

Britons' expectations for inflation in the coming year picked up to 3.3 percent in November, the highest in more than two years, a survey by Citi/YouGov showed. November's reading is up from 3.0 percent in October and well above the Bank of England's 2 percent inflation target.

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By the time you read this, the Government will have implemented the rise in VAT from 17.5% to 20%, but many of you will still be struggling with some of its implications. Announced in the Chancellor George Osbourne’s Budget, the rise on 4th January 2011 represents one of his key policy changes introduced to try to reduce the country’s budget deficit. This contrasts sharply with the previous Government’s policy to reduce VAT to 15% for a limited period, to stimulate growth; in other words asking consumers to buy their way out of recession. While this turnaround has forced many organisations to rethink marketing and policy strategy – the good news for the finance and AP departments is that this latest VAT change (the third over a period of 26 months) has meant that many organisations feel that they are well versed in how to cope.

Thursday, 25th November 2010

Fears of a double-dip recession faded last night as Britain continued its stronger-than-expected recovery. The economy grew by 0.8 per cent in the third quarter of the year thanks to a rebound in exports, official figures showed.

It was slower than the 1.2 per cent growth for the previous three months but was still welcomed by experts who said it showed the recovery was on track.

However, hard-pressed families are cutting back their spending in a worrying sign that the pace of recovery could slow further in the coming months.

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Thursday, 21 October 2010

Empathy for those who will be hit by the cuts was in short supply in Westminster, argues guest blogger Redundant Public Servant.

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