The government is committed to reducing government spending as a % of GDP to 35% – one of the lowest percentages since the 1930s. However, despite very strict government spending limits, (which see some departments spending cut by 30%), the government are still committed to a triple lock guarantee for pensioners. The triple lock guarantee …
Readers Question: How did the financial crisis affect stock markets and bond markets? Stock markets were first hit by the instability in credit markets. When financial markets realised the credit crunch would impact on the wider economy, shares in companies fell further. This is a typical response. When economies enter into a recession, firms make …
Supermarkets have strict criteria for the cosmetic appearance of fresh fruit and vegetables. The result of these criteria is that a high percentage (10-40%) of a farmers harvest can be rejected because the vegetables do not meet these standard rules of conformity. This problem of rejected vegetables was highlighted on a recent BBC programme ‘War …
The London housing market is one of the most expensive places in the world. In Sept, 2015, the average London house price is now just under £500,000 (BBC) Since 2013, house prices in London have risen 40%, defying a weak economy and stagnant growth in average earnings. London house prices are 7% higher than the …
Readers Question: Who really is a global funds manager? A global funds manager is person who looks after different investment trusts / pension funds. He will decide where and how to invest the fund of money in different markets. Individuals with savings may wish to seek better returns than just saving in a bank with …
The average UK household receives on average £6,045 a year in government benefits (2013/14) (ONS, average incomes table 14, June 2015) The main benefits are: State pension Tax credits Housing benefit Unemployment benefit Disability allowance / incapacity benefits Student support Child benefit See benefit spending UK The biggest benefit is the state pension, with the …
Income deciles show the average income for different income groups in society. A decile splits the population (by households) into 10 equal parts. Assuming there are 26 million households in the UK (2013/14) The bottom decile is the 2.6 million households with lowest income. The 2nd decile is the 2.6 million households in the next …
A chain-weighted inflation measure takes into account changes in both price and spending patterns. A chain-weighted inflation index measures both changes in the price of goods but also reflects changes in the number of goods bought. For example, suppose you buy two goods which are close substitutes – bananas (30p) and apples (30p) At this …