It's our weekly heads-up on the articles your clients may have read in the national newspapers over the weekend...
A former member of the Bank of England's Monetary Policy Committee has said the central bank is in danger of sparking another financial crisis if interest rates are left too low for too long.
The Mail on Sunday reports that Andrew Sentance, who was on the committee from 2006 to 2011, has said that putting off gradual hikes could force aggressive hikes further down the line. The base rate has remained at 0.5% since March 2009.
Falling inflation, coupled with rising wages will contribute to a recovery in household finances this year, according to The Sunday Times. Disposable incomes adjusted for inflation will rise by 1.1% in 2014, representing the biggest increase since the financial crisis. Real disposable incomes are then expected to rise by another 1.5% next year.
The Guardian reports that house prices in England and Wales rose for 51% of postcodes in February, the highest proportion since July 2004. Data from property researchers Hometrack has revealed that the housing market recovery has spread beyond London and is becoming noticeable across the country.
HM Revenue & Customs has said it will not charge VAT on Bitcoin trading. The tax authority met with a group of traders last week, according to The Financial Times, to confirm that it would not be charging the 20% tax on trades, meaning that Bitcoin will effectively be treated as a currency.
The Prudential Regulation Authority (PRA) has asked banks with a significant exposure to Asia to detail how they would be impacted in the event of a financial crisis, according to The Telegraph. Lenders including HSBC and Standard Chartered are facing stress tests that focus on assessing their exposures to a Chinese financial crash.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till