Watchdog admits failure over Rock

The UK financial watchdog, the Financial Services Authority (FSA), has admitted that it failed to regulate Northern Rock adequately.

The FSA said there had been "a lack of adequate oversight and review" by the agency of the troubled bank.

It said too few regulators were assigned to monitor Northern Rock, which ran into trouble in August.

The FSA said it would be overhauling its procedures as a result of the weaknesses identified.

Newcastle-based Northern Rock was nationalised in February after the credit crisis forced it to seek a Bank of England lifeline to fund its mortgage loan book.

Last week it said it would cut about 2,000 jobs by 2011 and reduce its residential mortgage lending by half under plans to turn around its fortunes.

Northern Rock must also pay back Bank of England loans worth about £25bn.

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It appears that the few regulations that Parliament set on Northern Rock Bank have failed. This may cause Parliament to reform their policies on foreign companies.

UK will fight turbulence - Brown

Prime Minister Gordon Brown has promised that the UK and other EU countries will "lead the way" in fighting "global financial turbulence".

He told MPs that an EU summit at the weekend had agreed "co-ordinated action at a European and global level".

Tory leader David Cameron said the UK was suffering from not "putting money aside in the good years".

It came as an ICM poll suggested the Tories had a 13-point lead over Labour and were trusted more on the economy.

Markets have recorded heavy losses in reaction to the emergency bailout of US investment bank Bear Stearns.

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The U.K. to the rescue!

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Immigration points system begins

A long-expected overhaul of the UK's immigration system has come into force with the launch of a point-based system for foreign workers.

The first stage of the system becomes operational on Friday - and will apply fully by the end of the summer.

Ministers say the changes are the biggest for a generation - and will allow the UK to better control migrants from outside EU.

But the Conservatives say they want an annual cap on the numbers allowed in.

Under the system, migrant workers will need to show they have sufficient skills under new rules that assess whether or not the economy needs them.

Applicants are given a score based on their abilities, with a special body advising ministers on how many points to award to certain skills to reflect economic conditions.

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This article shows how important immigration limitations are to the British government. This policy in combination with the new citizenship policy could cause a sharp decrease in the amount of "England-bound" immigrants.

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Northern Rock bill gets approval

The bill to allow Northern Rock bank to be nationalised has become law after peers backed down in their demands for extra safeguards.

The Banking (Special Provisions) Bill, which cleared the Commons on Tuesday, ran into opposition in the Lords.

But MPs rejected peers' demands for an independent audit, and for the bank to come under Freedom of Information laws.

The Conservatives said it was a matter of "deep regret" that ministers had rejected the amendments "out of hand".

A third amendment requiring the Office of Fair Trading to report annually to Parliament on the impact on competition in the UK's banking market, was rejected without a vote by MPs, after ministers offered a compromise.

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This article is a prime example of how strict the U.K. is about allowing foreign companies to become naturalized within the country.

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Brown considers training payments

Gordon Brown wants to see poor families paid extra benefits if they take on work or skills training.

During his first visit to Wales as PM, he will call for a "contract" between government and the worst-off families.

He is examining a New York scheme which offers cash to encourage people back into work and education.

For the Tories, Chris Grayling said Mr Brown was "chasing headlines" after warning last month of benefits cuts for those who refused training.

Later Mr Brown will tell Welsh Labour's Llandudno conference that people must do what they can to take up work and acquire the skills to become employed.

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If Brown's plan is enacted then it may reduce the crime rate even further than it is now. Also, this plan may help improve the economy as well.

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Food and petrol push up inflation

Rising food and petrol prices pushed up UK inflation in January, figures show.
Last month's Consumer Prices Index (CPI) inflation figure rose to 2.2%, up from 2.1% in December. The rate is the highest since June 2007. The Retail Price Index (RPI), which includes mortgage interest payments, rose to 4.1% from 4% in December.

However, while price growth was strong, it was not as quick as many analysts had feared, boosting hopes of further interest rate cuts in the UK this year. Below trend The Bank of England cut UK interest rates last week to 5.25% from 5.5% in an attempt to prevent a major slowdown in the economy.

But the Bank signalled that it was unlikely to cut rates as sharply as the US Federal Reserve - which has slashed borrowing costs to 3% - because of fears over inflationary pressures. "It will be some time yet before the MPC's inflation concerns evaporate," said Jonathan Loynes at Capital Economics. Many analysts are predicting that the Bank will keep rates on hold in order to get a clearer picture of long-term economic and inflationary trends, and the impact slower growth will have on consumer prices.

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This article is about the rising inflation in Great Britain. In Britain Their is a direct effect between our economy and theirs . These rates could be cause by our problems right now.

UK unemployment continues to fall

Analysts say the strength in labour market is unlikely to continue UK unemployment fell by 13,000 between September and November to stand at 1.65 million, government figures show.
The Office for National Statistics (ONS) said the number of people claiming jobseeker's allowance in December fell by 6,400 to 807,700.

This was the lowest number since 1975 and the 15th consecutive monthly fall in the number of claimants. Analysts said the data suggested the UK job market remained robust despite expectations of an economic slowdown.

"UK labour market data for December showed that the increasing doom and gloom on the economy is not yet hurting the labour market," said Alan Clarke at BNP Paribas.
The labour market lags activity and survey indicators are already pointing to a standstill in hiring growth Alan Clarke, BNP Paribas
However, there are worries that the strength in the labour market may fade as growth slows.

This Article is relevant because it shows that The UK's economy is currently on the rise. This is also the lowest unemployment level in the UK since 1975 which is a very intriguing number.

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London Olympic boost for business

The race is on for UK firms to win contracts around the 2012 Olympic games in London.
So far most of the publicity swirling around the 2012 Olympic Games has been of a stubbornly negative nature, with talk of budget "black holes", a logo which attracted a mixed response at best, and possible raids on National Lottery funds.

But amidst the accusations and criticisms, particularly relating to the way costs have soared since 2005, it is easy to overlook the positives surrounding the London event.
Business opportunities

The right to host the Games could make this a 'golden decade' for major events in the UK and, therefore, British business

Sebastian Coe, chairman, London Olympics Organising CommitteeThe biggest sporting event on earth offers a wealth of opportunities for UK businesses who want a slice of the many contracts and supply opportunities in the five-year run-up to the games.
And the starting gun on the race to win those contracts is being fired at an event at Manchester United's Old Trafford stadium, attended by hundreds of businesses from across the north of England.

This Article is signifigant because The London Olympics could be a defining part of the new century for the British. Also It could potentially bring lots of business to London and put the International spotlight back on the area
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Index of Economic Freedom in the U.K.

The economy of the United Kingdom (U.K.) is 79.5 percent free, according to our 2008 assessment, which makes it the world's 10th freest economy. Its overall score is 0.5 percentage point lower than last year, reflecting worsened scores in four of the 10 economic freedoms. The U.K. is ranked 3rd out of 41 countries in the European region, and its overall score is much higher than the regional average.

The U.K. scores extraordinarily well in investment freedom, trade freedom, financial freedom, property rights, business freedom, and freedom from corruption. The average tariff rate is low, despite distortionary EU agricultural tariffs, and business regulation is efficient. Almost all commercial operations are simple and transparent, and support for private enterprise is a world model. Inflation is fairly low, and the business climate attracts foreign investment. The financial sector is a world hub. The judiciary is independent and highly trained. Corruption is almost nonexistent, and the labor market is notably flexible.

The U.K. scores far below the world average in government size and fiscal freedom. Total government spending equals more than two-fifths of GDP, and tax revenue and rates are very high.

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This artcle shows the amount of freedom that the U.K.'s economy has in comparison to the rest of the world.