Subscribe to The Money StopNews Feed

Browse > Home / News, News-Loans / Households to be worse off in 2008

Households to be worse off in 2008

January 22, 2008 by admin  
Filed under News, News-Loans

Leave a Comment

Households will be financially worse off in 2008, according to Ernst & Young ITEM Club’s latest forecast for the UK economy.

The research, using the Treasury’s own economic model, describes public finances as a “mess” and anticipates the situation to get worse with slower growth and slower tax revenues predicted.

Speaking to the Independent, Peter Spencer, chief economic adviser to the ITEM Club, said: “Now that the economy is slowing sharply, the public finances will deteriorate equally rapidly.”

He added: “We have revised our forecast of this year’s current deficit up to £14 billion, compared with the Treasury’s pre-Budget report forecast of £8 billion.”

Experts have predicted that the Bank of England will cut interest rates at least three times to 4.75 per cent, or to a figure even lower, from the current 5.5 per cent over the course of the year or by 2009 if the economy continues to slow.

Meanwhile, research from property expert Right move shows that house prices are rising at their slowest rate for two years.

Tags: Right Move, year, rate, budget report, Business Finance, Economic

Tags:

Related Entries

  • Brits try and make ends meet by taking in lodgers
    • In the ongoing difficult financial climate many households in Britain have been struggling to make ends meet, and this situation has been made worse by the ongoing recession, which has resulted in soaring unemployment levels
  • Fuel prices hit a record high
    • Things have been looking increasingly dismal for drivers over recent months when it comes to petrol prices, and for many the rising cost of petrol has caused real financial problems, making it difficult for some
  • Inaccurate bills common amongst energy suppliers
    • Many households are used to getting bills that are inaccurate for one reason or another, and these bills can come from a variety of sources and companies. This can be very frustrating for the bill
  • Rise in burglaries means more protection needed for households
    • Officials from the insurance industry have spoken out recently about the rise in the level of domestic burglaries during the recession, adding that it has become increasingly important for households to protect themselves from this
  • Interest rate cuts may not affect credit availability, says expert
    • The Bank of England's interest rate cuts are unlikely to have an effect on the declining availability of credit, says economic research consultancy Capital Economics.Lenders reported that during the first quarter of 2008 they had
  • Are you covered for bonfire night?
    • Homeowners are being advised to make sure that they check their home insurance policies and plans before the festivities of Bonfire Night, as they need to make sure that they have the right level of
  • Negative equity could hit many more
    • As a result of the house price crash that has seen a large percentage wiped off the value of UK properties over the past eighteen months it has been estimated that around one million homeowners
  • Zurich insurance fined over customer data loss
    • Insurance giant Zurich has received a hefty fine from the UK's financial regulator, the Financial Services Authority. The fine has been imposed because of a serious breach of security relating to the loss of customer

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!