Insurance blog thought the silly season was in the Summer, but from the noises coming out of Whitehall and what remains of Fleet St. recently, it looks like it’s begun early!
If all the Economic pundits are to be believed, you would think that the economy was rosy! No chance of a the dreaded double dip recession now ……..
Hmm, what about the 600,000 job losses in the public sector that still have to be made this spring and will have to be paid for out of a shrinking GDP, rising wage demands from the private sector, fuels costs going through the roof and VAT at it’s highest ever 20%!
However you look at the current situation the immediate future does not look too bright!
Amongst all the coalition division and noise about quangos, cuts, student fees, interest rates and inflation, the UK Government has this week raised Insurance premium tax to 6%. With the cost of Insurance already at record highs as companies try to build up lost claims reserves, maybe they thought we’d not notice more indirect taxation!
The future doesn’t look too orange for Corporal Clegg and his Liberal lackies either who are currently enjoying their lowest popularity level for 30 years.
Meanwhile David Cameron is making noises about the housing sector while failing to enforce the necessary lending from the banks that would inject some momentum into a recovery, he has spoken out about plans to clamp down even further on mortgages in the name of responsible lending.
Tory Housing minister Grant Shapps has said that under the new FSA’s Mortgage Market Review (MMR) proposals, he himself would have failed to get a mortgage.
Now Cameron has said that lenders have already gone too far in preventing
View the Original article