The week in review
We look at this week’s major news stories and how they affect our readers.
David Laws resigned his post of Chief Secretary to the Treasury after admitting he claimed £40,000 in expenses to pay rent to his partner.
Mr Laws said his actions were driven by his desire to keep his homosexuality private, rather than benefit financially from the expenses system.
Rules introduced in 2006 prohibit MPs from claiming expenses to live in a partner’s property.
Mr Laws was responsible for making £6 billion worth of spending cuts. He has been replaced by Liberal Democrat Danny Alexander.
Civil service rich list
More than 170 civil servants receive higher salaries than Prime Minister David Cameron’s £142,500 per year, the Cabinet Office has revealed.
The government published the salaries of 172 people earning above £150,000 in a bid to increase transparency and win public trust.
John Fingleton, Chief Executive of the Office of Fair Trading, earns the most with a pay packet between £275,000 and £279,999. NHS boss David Nicholson is the second highest earner with a salary up to £259,999.
Elsewhere, Royal Mail’s annual report revealed former boss Adam Crozier was paid £2.42 million during his final year with the company.
JP Morgan fined £33m
JP Morgan Securities received a record £33.32 million fine from the Financial Services Authority (FSA) for failing to keep clients’ funds separate from its own.
FSA guidelines state clients’ money should be kept in separate accounts to protect it in the event of insolvency. The firm had kept the money together for a period of seven years.
BA passenger numbers fall
Passenger numbers at British Airways (BA) fell by 14.2 per cent in May compared with last year, as industrial action continues to blight the airline.
The third set of five-day walkouts from cabin crew begin on Saturday. The strikes are part of an ongoing dispute over pay, conditions and travel perks.
The cabin crew union Unite has said the strikes are costing BA £7 million per day.
RBS announces job losses
The Royal Bank of Scotland (RBS) plans to cut a further 500 posts in addition to last month’s announcement of 2,600 job losses, the bank has said.
The losses will be in the wealth management division, including Adam & Company and Coutts & Co.
RBS has said the losses will be over a three year period and it will try to avoid compulsory redundancies where possible.
Volcanic ash radar
Airline EasyJet has unveiled a system it believes will allow airlines to fly around clouds of volcanic ash.
The Airborne Volcanic Object Identifier and Detector (AVOID) will use infrared technology to allow pilots to see ash clouds from a distance of up to 62 miles. Pilots can then adjust course accordingly.
House prices 10% from 2007 peak
House prices are within ten per cent of their October 2007 levels, Nationwide building society has revealed.
The average house price was at £169,162 in May according to Nationwide’s monthly survey. This is up from £167,802 in April.
Job vacancies increase but salaries fall
Job vacancies increased last month but the salaries offered actually fell, according to employment agency Reed.
Reed saw a one per cent increase in the vacancies advertised through its services during May compared with the previous month.
The average salary offered decreased from £33,200 to £31,800
**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.**
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