The week in review
We look at this week’s major news stories and how they affect our readers.
The three main parties have yet to disclose the extent of impending spending cuts according to a leading think tank on public finances.
A report from the Institute of Fiscal Studies (IFS) exposed potential holes in each party’s spending plans totalling tens of billions.
The IFS predicts cuts could be the deepest since the 1970s if the parties are to meet spending targets.
According to the report, Labour has yet to spell out 87% of implied cuts. The Conservatives need to account for 82% of cuts and the Liberal Democrats have a potential spending gap of 74%.
Banks rapped over customer complaints
Banks have come under fire from the city watchdog because of the way they handle customer complaints.
The Financial Services Authority (FSA) revealed that five high street banks are now making major changes in the way they deal with customer complaints. Two of the five are being investigated further and may face hefty fines.
The report blamed banks’ failings on a lack of interest from senior management and incentive schemes that make staff reluctant to pay out to customers.
Confusing news on energy bills
Ovo Energy, previously one of the country’s cheapest utility suppliers, increased the cost of its New Energy Fixed Online tariff by 8 per cent which equates to £72 per year. The company blames the increase on rising wholesale prices (the price at which companies buy energy).
At the other end of the spectrum, British Gas said its average customer’s gas bill fell by two per cent in the first three months of 2010.
Despite the harshest winter for more than three decades, the typical household bill was £373 during this period – compared to £381 in 2009.
Election debate
The leaders of the three main parties met for the final election debate before polling day.
With the topic of the economy, David Cameron, Nick Clegg and Gordon Brown butted heads on topics such as tax credits, house prices and government spending.
Mr Brown said: “I do know how to run the economy in good times and in bad.”
Mr Clegg argued the Liberal Democrats could bring change: “We’ve got to do things differently – to deliver the fairness, the prosperity, the jobs which you and your families deserve.”
Despite these entreaties, Mr Cameron came out on top in the post-debate polls.
Brown’s big blunder
Gordon Brown made the biggest gaffe of the election race so far by calling Rochdale pensioner Gillian Duffy ‘a sort of bigoted woman’.
He made the comment to an aide after Ms Duffy quizzed him on topics such as pensions and immigration. Unfortunately for the PM, he was wearing a live microphone.
We’re not sure what Clegg and Cameron would have to do to top that in terms of gaffes.
Speaking in this week’s live election debate the following day, Mr Brown said: “There is a lot to this job, and as you saw yesterday, I don’t get it all right.”
**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.**
