The week in review
We look at this week's major news stories and how they affect our readers.
The Bank of England (BOE) lowered its economic growth forecast this week and said inflation looks set to remain higher than previously thought.
The BOE predicts the economy will grow by less than three per cent in 2011 – downgraded from the previous forecast of 3.5 per cent.
It also forecasts inflation will be above the government’s two per cent target.
BOE governor Mervyn King said: ‘It will take many years before bank balance sheets and fiscal positions return to anything like normal.’
Mr King attributed this economic uncertainty to factors such as a lack of bank lending and the coalition’s spending agenda.
However, the BOE continues to back the government’s financial policies and does not believe there will be a double dip recession.
More than 1,000 people stranded abroad
Approximately 1,200 holidaymakers have been stranded abroad following the collapse of travel company Sun4U.
Most of those affected are currently stranded in Spain and it is thought some holidaymakers may have to pay for their accommodation twice.
Birmingham-based Sun4U has apologised to customers and advised them to contact ABTA – The Travel Association.
For more on this topic, see ‘What to do if you’re stranded abroad’.
House repossessions fall
The number of homes being repossessed fell in the second quarter of this year, the Council of Mortgage Lenders (CML) has said.
Lenders took possession of 9,400 properties in the three months before the end of June, the CML has said. This figure is down by 400 on the previous quarter.
The CML also revealed the amount of mortgages in arrears declined during the quarter. At the end of June, there were 178,200 loans in arrears – down 17 per cent from a year earlier.
However, the CML warns against complacency as the number of borrowers with significant levels of arrears remains high at 26,400.
Jobless total down almost 50,000
The total number of unemployed people has fallen to 2.46 million in the three months before the end of June, the ONS has revealed.
This decrease of 49,000 is the biggest in three years.
According to the ONS, this increase was largely due to a surge of 115,000 part time workers. There are now 7.84 million people employed on a part time basis – the highest figure on record.
Scam sites shut down
Almost 200 websites running income tax phishing scams have been closed in the past three months, HM Revenue & Customs has said.
In order to trick people into handing over their bank account details, the sites had been sending out emails suggesting victims could claim a tax rebate. Other victims had been phoned and asked to reveal their banking details.
In other fraud-related news, the Office of Fair Trading has taken action against websites charging holidaymakers for European Heath Insurance Cards that can be obtained for free.
The four sites had charged victims a £10 administration fee for making the application – which members of the public can do themselves for free.
Will writing laws ‘should be tightened’
People are losing thousands of pounds to dishonest will writing professionals, Scottish minister Fergus Ewing has said.
Mr Ewing told Panorama that intended beneficiaries have had their inheritance stolen, while others have been duped by supposedly cheap deals full of hidden costs.
The Scottish government is currently drawing up legistlation to increase protection but Mr Ewing says similar action is required in the will writing industry throughout the UK.
**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**
