Business News Articles

Bank of England cuts rates
The Bank of England, the US Federal Reserve and the European Central Bank are among seven central banks that have cut interest rates by 0.5%. The UK rate move had not been expected until later this week and means interest rates now stand at 4.5%. The US Federal Reserve has cut rates from 2% to 1.5% and the European Central Bank trimmed its rate to 3.75%. Central banks of Canada, China, Sw... more

Government reveals bank bailout
The government has announced details of a rescue package for the country’s largest banks and building societies in a bid to get financial institutions lending to each other again. The package could be worth up to £50bn and will see the government receive preferential shares in those companies. ... more

Bigger green loans on offer
The Carbon Trust has doubled the amount of money it will loan companies to make energy efficiency improvements to £200,000 and increased the total pot by 45% to £31m. The move is designed to ensure small businesses continue to invest in such initiatives despite the current economic climate and the government body hopes to increase the amount of carbon saved by 20% this year as a result. ... more

Small firms: recession already here
Small businesses believe the UK is already in recession and expect unemployment to rise by 350,000 by the end of the year, according to a British Chambers of Commerce (BCC) survey. The group is calling on the government to cut business taxes and the Bank of England to reduce interest rates in a bid to prevent widespread failures. ... more

FSB criticises energywatch loss
The Federation of Small Businesses has criticised the government’s decision to close the energy regulator energywatch despite widespread opposition. The body will now be merged into the more general organisation Consumer Watch, which offers only a limited service to small companies. ... more

Firms sticking with UK savings
Small businesses have so far resisted the temptation to move funds to Irish banks after the announcement by the Irish government that it would guarantee savings for a period of two years in the event of a bank collapsing. According to a survey carried out by the BBC and Unicom, 92% of small businesses have not considered moving deposits. ... more

Small businesses could lose out on tax relief
Small businesses in the UK could lose out on up to £200 million in tax relief, the Department for Communities and Local Government (DGLC) has warned. According to the DGLC some local authorities are following outdated central government guidance that imposed a deadline of yesterday for small business rates relief claims. In 2006 the department introduced an updated timetable that ensured ap... more

House price falls continue
The rate at which house prices are falling in England and Wales is growing, according to figures released by the Land Registry. The latest report revealed prices fell by 1.9% in August, giving an annual drop of 4.6%. ... more

Christmas spending set to fall
Households will spend over £100 less this Christmas than last as the economic slowdown sees customers restrict spending. The average household spend on the festive season this year will be £483.47, a reduction of £108.53 on the figure for 2007. ... more

Bradford & Bingley nationalised
The government have confirmed that mortgage lender Bradford & Bingley is to be nationalised. Under the rescue package the government will assume control of the financial institution’s £50bn worth of mortgages and loans. B&B’s savings business and branch network is to be bought by rival branch Abbey National, which is owned by Spanish banking group Santander. "Following recent turbule... more