Many more businesses may face closure next year

The UK has been overwhelmed with concern over recent weeks, with some of the best known retailers announcing that they are going into administration, having been unable to continue coping with huge debts as the recession, the global credit crunch, and the continuing economic downturn continue. Woolworths, MFI, and Zavvi are just a few of the big names to have made the dreaded announcement, but there could be many more to come according to some industry officials. Read more

Tags: closure, early christmas sales, business closures, stock, economic downturn, insolvency

Rise in savings deposits at building societies

According to a recent report there was a rise in the amount of money deposited into building society savings accounts in the first half of this year. The figures were recently released by the Building Societies’ Association, and indicated that the level of deposits being made into building society savings accounts had risen by almost two thirds in the first six months of this year. Read more

Tags: amount of money, stock market, stock, six months, market turbulence, dependence, rise, business

Isas to be ‘increasingly’ popular

The growing popularity of individual savings accounts (Isas) in the past few years is a continuing trend, an industry expert has said.

According to Michael Brill, director of Baronworth Investment Services, people are increasingly putting their equity into Isas as traditional banking methods become more risky and less attractive.

He said: “If you go into a cash Isa then it is very safe. In a deposit account, one would have thought it is the safest you can get.

“If someone wants to make sure their money is saved and they are not playing with the stock market it is an excellent way to save tax free money and a lot of people are doing it.”

He added that, in the most part, cash Isas are “very flexible”, with consumers advised to select one that best suits them.

HM Revenue and Customs released figures this month showing the amount of money invested in Isas, which now stands at an impressive £208 billion.

Tags: ISA, stock, michael brill, lot, way, Business Finance, market, industry

UK ‘confident’ in property market

The attitudes of the UK public to the homeownership reveal a strong seated confidence in the property market, a new report from the Building Societies Association (BSA) has shown.

The research indicated that 88 per cent of all home purchases are made primarily for living improvements rather than for capital gains.

It was also revealed that as many as 71 per cent of homeowners accept that prices could begin to fall this year, but that less than two per cent would feel compelled to immediately sell up in the event that this happened.

Adrian Coles, director general of the BSA, said: “Growth in residential property prices has largely been due to a wide selection of factors including low interest rates, lack of suitable housing stock, a buoyant economy and the ingrained desire in the British psyche to own property.

“Some commentators have cautioned that the market may be over reliant on consumer’s expectations that prices will continue to rise. However our report puts paid to these fears. Consumers have a realistic view of the property market.”

Last month, a report from the BSA argued that building societies offer higher levels of customer satisfaction than other financial institutions.

Tags: Boy Scouts of America, building society, customer satisfaction, ingrained desire, Real estate, Outdoor recreation, realistic view, stock

Isa limits grow but not enough

People who are looking to invest money in a cash Independent Savings Account (Isa) have been given a welcome boost in Gordon Brown’s 11th Budget.

The Chancellor of the Exchequer announced that investors can now save an additional £600 in an Isa and will be free from paying tax on that money.

When cash Isas were first introduced in 1999 the maximum tax-free savings amount was £3,000. This figure has never changed until now.

Despite the increase being well received by many, Mr Brown has been criticised for only raising the total Isa limit by £200 to £7,200.

Critics argue that while the £3,600 limit is in line with inflation, the £7,200 limit falls well short.

“While the increase in the cash Isa allowance is a welcome move, we believe more should be done to encourage long-term savings,” commented Mike Regnier, head of savings at Halifax.

“If the total ISA allowance had risen in line with inflation, savers would now be able to invest around £8,500 per year, free of tax.”

The increase on total Isa limits has been labelled “meagre” by the Association of British Insurers, which called for the government to continue increasing limits in the years to come.

Gordon Brown’s new Isa limits will come into effect from April 2008.

Tags: tax, total isa, inflation, money, total isa allowance, stock, long-term savings