"Stephen Green's appointment as trade minister is good news for the UK. Stephen has a deservedly strong reputation as a skilled business leader both in the UK and internationally and he is just the right man to demonstrate to our overseas partners that the UK is a global business centre and an excellent base from which to operate,” said Angela Knight, chief executive of the British Bankers Association (BBA).

She said Green, who is an ordained minister in the Church of England and a respected writer, understands the economy and the current financial climate.

“His extensive knowledge of the City and its players will ensure he makes a valuable contribution to ensuring the UK economy continues to recover and prosper,” she said.

The BBA said the appointment of a top flight businessman of international standing demonstrates the importance of financial services to our economic recovery and prosperity and proves the UK is taking trade policy seriously.

HM Revenue & Customs (HMRC) said on Monday that it has started to send calculations to show if you have paid too much or too little PAYE tax for the 2008-09 and 2009-10 tax years. All 5.7 million letters are slated to arrive between now and Christmas.

It is estimated that 5.7 million people will be affected, and some 1.4 million could face bills as high as 1,500 pounds  – but another 4.3 million will be owed money after the taxman deducted too much from their earnings. Estimates put the overpayment at around 1.8 billion pounds.

     If you do get a letter, HMRC says: “If you do get one, it’s important that you check it to make sure you agree with the information included.” 

For more information visit the PAYE website at PAYE tax calculations explained - HMRC Opens new window

 “Suppliers have existing obligations to detect and prevent mis-selling and new licence conditions were brought in following our probe to further increase protection for customers. We expect all suppliers to comply with these tougher obligations but if our investigations find otherwise we will take strong action,” said Andrew Wright, Ofgem’s Senior Partner, Markets.

Ofgem said it was also urging customers to call a hotline if they are concerned about the sales approach any domestic suppliers have taken when selling energy contracts, either face-to-face or by telephone.

The hotline will be available on the standard Consumer Direct number 08454 04 05 06 (when dialing this number customers should choose option 1) and Ofgem will review any evidence of mis-selling of energy contracts which Consumer Direct passes on.

Ofgem introduced tougher obligations in October for suppliers to become proactive in preventing mis-selling to customers both face to face and over the phone.

“If suppliers are selling contracts face to face they must provide customers with an estimate before any sales are concluded. In most circumstances customers should also receive a comparison of the supplier’s offer with their current deal,” said Ofgem.

“As more sellers have returned to the market, buyers have a greater selection  of properties to choose from and more bargaining power with which to bid down asking prices,” said Martin Gahbauer, chief economist at Nationwide.

Nationwide said on Thursday house prices fell by 0.9% month-on-month in August following a decline of 0.5% in July.  Gahbauer said this is the first time since February 2009 that house prices have fallen in two consecutive months.

However, there seems to be little evidence of distressed selling in view of recent statistics from the Council of Mortgage Lenders, which showed another drop in mortgage arrears and

possessions.

“Unless house prices bounce back strongly in September, the three month rate of change will turn negative next month. The annual rate of inflation – which compares the current average price with the price level twelve months ago – remained in positive territory at 3.9%. However, it is down quite sharply from rates of 6.6% in July and 8.7% in June,” said Gahbauer.

But Nationwide noted that the current period of price declines is likely to remain relatively modest given that recent price increases had “gotten ahead of the recovery in the wider economy, the current correction is not an unhealthy development.”

 Interest rates will continue to put a floor under house prices as, for the moment, however, they are unlikely to rise until well into 2011, say experts, adding that increases after that will be gradual.

'For those who bought at the peak of the housing boom, there's a strong possibility that they will have to wait another four years before their home is actually worth what they paid for it,” said Federation chief executive David Orr.

The NHF said people who purchased a property in England at the peak of the market in 2007 paid an average price of £216,800 and warned that they have will have to wait until 2014 – when average prices are predicted to hit £226,900 - before they recover their income.

The NHF in its report – Home Truths 2010 – found that despite the recent recession, house prices nationally are still 19% higher than five years ago and 120% higher than 10 years ago and that over 1.76m households, or the equivalent of 4.5 million people, were on social housing waiting lists in 2009, a 23% increase in the last five years.         

However, in the long term prices are likely to increase due to huge under-supply of housing, said the NHF.

Critics, however, not that affordability for first-time buyers remains a real problem – and this could pull the rug from under prices.

'There’s a very real risk that an entire generation will be locked out of the housing market for the foreseeable future and people will increasingly look to buy or rent an affordable home instead,” said Orr.

Figures from the Bank of England on Tuesday showed that mortgage lending fell steeply in July to net lending of just 86 million during the month.

However, independent economists Oxford Economics forecast house prices would increase 22% over the next five years – fuelled by a chronic under supply of new housing.  According to the research, house prices will rise 7.5% this year, but will then fall again in 2011 by 3%, before recording a modest increase of 0.9% in 2012.

“I think the tax burden is necessary as a significant contribution to getting the country’s finances in order…So it will have to stay at that level for quite some time,” Danny Alexander, Liberal Democrat charged with cutting the £155 billion deficit, told newspaper The Observer.

When asked if an improved economic outlook could bring about a reduction in the overall tax burden, Alexander was quoted as saying: “You are asking me to take decisions for five years down the line now and I am not going to do that. What I want to see is a rebalanced and fairer tax system.”

Last week the research by IFS said the poorest Britons are the worst affected by the Chancellor’s so called “progressive Budget.”

The Chancellor, Conservative George Osborne, said in his Budget speech that the June 2010 Budget was a ‘progressive Budget’. But IFS researchers have said that the main measures which will lead to losses amongst better-off households were announced by the previous government and that the reforms to be in place by 2014–15 are generally regressive.

 “Once all of the benefit cuts are considered, the tax and benefit changes announced in the emergency Budget are clearly regressive as, on average, they hit the poorest households more than those in the upper-middle of the income distribution in cash, let alone percentage, terms. The distributional effect of all tax and benefit reforms due to be implemented by 2014–15 is clearly regressive within the bottom nine decile groups of the income distribution when losses are expressed as a percentage of net income, although it is less clear cut when losses are expressed as a proportion of expenditure,” said the IFS in its research.

 “Barclays’ decision to offer discounted mortgage rates to existing customers only continues a trend that is becoming more and more widespread across the financial services industry. It’s cheaper for the banks to sell new products to existing customers rather than pull in new customers via price comparison sites,” said Ed Bowsher from  lovemoney.com.

 Barclays said its current account customers will be rewarded with a reduction of up to 0.54 percentage points off selected tracker, fixed rate and offset mortgages. Customers with any of Barclays current accounts, including Premier, Additions and Graduate accounts, can all be eligible for the special rates.

Barclays said deals will available include a two year fixed rate mortgage at 2.95 per cent for deals up to 70 per cent loan to value – 0.54 percentage points below the standard offer and lower than the current best fixed rate from HSBC. For mortgages up to 80 per cent loan to value the rate is 4.19 per cent – a discount of 0.19 percentage points.

Andy Gray, head of mortgages for Barclays, said “We are always looking at how we can offer the most competitive mortgage rates we can and the most deserving people for these are our existing customers. What this new scheme means is that our current account customers will now always have access to discounted rates in our range, as a reward from us to them for their loyalty.
Discounts like this could save Barclay’s customers £922 in the first two years of their mortgage alone, based on an average mortgage advance of £135,000. For larger mortgages, for example a £500,000 advance, the savings could top £3,400.

“The option to use a balance transfer to clear non card debts is a rare opportunity to save on expensive loan or overdraft interest,” says Andrew Hagger of Moneynet.co.uk

Moneynet says that unlike a balance transfer transaction, a money transfer can be paid into your current account, thus giving you more flexibility and opportunities to cut your interest costs.

“The other big plus point with this deal is that the usual hefty money transfer handling fee of 4% does not apply to transfers made within the first 90 days,” said Hagger.

He says this is an excellent opportunity to get to grips with your overdraft and save some money in the process.

The interest rate on the MBNA card reverts to 16.9% APR after 12 months, so users need to work towards clearing off their debts as fast as possible.

The Chancellor, George Osborne, said in his Budget speech that the June 2010 Budget was a ‘progressive Budget’, backed up by distributional analysis in the Budget documentation that showed that tax and benefit changes due to come into effect between now and 2012–13 will hit the richest more than the poorest.

But IFS researchers on Wednesday said that the main measures which will lead to losses amongst better-off households were announced by the previous government and that the reforms to be in place by 2014–15 are generally regressive.

 “Once all of the benefit cuts are considered, the tax and benefit changes announced in the emergency Budget are clearly regressive as, on average, they hit the poorest households more than those in the upper-middle of the income distribution in cash, let alone percentage, terms. The distributional effect of all tax and benefit reforms due to be implemented by 2014–15 is clearly regressive within the bottom nine decile groups of the income distribution when losses are expressed as a percentage of net income, although it is less clear cut when losses are expressed as a proportion of expenditure,” said the IFS in its research published on Wednesday.

The distributional analysis in Budget documents excluded, for instance, the effects of some cuts to housing benefit, Disability Living Allowance and tax credits that will tend to hit the bottom half of the income distribution more than the top half.

The IFS said low-income households of working age lose the most as a proportion of income from the tax and benefit reforms announced in the emergency Budget. Those who lose the least are households of working age without children in the upper half of the income distribution. They do not lose out from cuts in welfare spending, and they are the biggest beneficiaries from the increase in the income tax personal allowance.

The biggest single change to benefit policy in the June 2010 Budget in fiscal terms was the decision to link benefits with the Consumer Price Index (CPI) rather than the Retail Prices Index (RPI) or Rossi index from April 2011.

“This is very likely to mean less generous benefits in the years ahead,” said the IFS.

previous six months, said the British Bankers Association (BBA).

“Gross mortgage lending remains stable, although demand for

mortgages continue to be subdued. The greater availability of

properties for sale and slowing house price growth have not yet fed through to increased house purchase approvals,” said BBA statistics director, David Dooks.

He said: “consumer credit outstanding continues to reflect high repayments together with pressure on household finances and job uncertainty while companies are tending to retrench and reduce their bank borrowing.”

The BBA said the average value of house purchase approvals (£148,500) fell slightly but numbers of remortgaging and equity withdrawal approvals are at similar levels to

June and the previous six months average.

The BBA said numbers of card purchases fell back in July to be in line with the six-month

average despite reports of slightly stronger retail sales volumes.

And the annual growth in the banks’ net mortgage lending is 4.1%, substantially

ahead of the 0.9% for the whole mortgage market in June.

Subdued spending has led to reduced consumer demand for credit (particularly for

personal loans) which contracted by 2.2% over the year.

 The BBA said the abolition of HIPs has not had an obvious impact on the number of house

purchase approvals, which declined slightly in July.

But repayment levels are holding up and more than matching new spending levels,

so the stable growth in card borrowing, largely, reflects interest accruing.