There is no "compelling case" for an interest rate cut, even though the economy will grow by just 1.7pc this year, the Organisation for Economic Co-operation and Development OECD reports the Tlegraph
The OECD also said Gordon Brown would need to raise taxes in its annual assessment of the UK economy says the paper..
The Telegraph quotes the OECD as saying: "Under current spending plans, an increase in the tax ratio will be required to meet the fiscal rules and significantly reduce the deficit over the coming [economic] cycle.”
The report was generally positive, and the UK came first among its Group of Seven peers for its economic stability.
However, in terms of wealth per person, the UK has overtaken France, Germany, Italy and Japan, but still languishes at 14th place out of the 30 OECD countries.
The OECD said workers needed more skills, and public money needed to be spent more wisely in order to increase the country's wealth.
It also recommended improving transport and helping people get off incapacity benefits and back into work.
The Office for National Statistics said yesterday that the number of long-term sick has fallen by 83,000 to 2.12m between June and August.
Overall, August saw the eighth consecutive monthly rise in the number of people on the dole. The claimant count was up 8,200 to 875,500, the highest it has been for 18 months. Last month's figure for the claimant count was also revised upwards.
MEANWHILE UNEMPLOYMENT continued its gradual rise last month but there was little evidence of inflationary pressure on pay, as the growth in average earnings and bonuses, remained unchanged, according to official figures published on Wednesday says the Financial Times.
The claimant count, which measures unemployment as those out of work and claiming benefit, increased by 8,200 to 875,500 in September, the eighth consecutive month that it has edged higher.
The paper says the monthly increase was larger than had been expected by independent economists. But Geoffrey Dicks of Royal Bank of Scotland said: “it suggests some inward migrants are displacing domestic workers (who can sign on) rather than any fundamental weakness in labour demand.”
Compared with January, 61,700 more people are claiming unemployment-related benefits, which represents 0.2% of the workforce, the Office for National Statistics said.
The official measure of unemployment, based on a survey of those out of work and seeking employment, stood at 1.42m in the three months to August, down 7,000 on the previous three months but up by 21,000 on the same period a year ago. The unemployment rate was 4.6%, as defined by the International Labour Organisation, the United Nations agency, which is close to the low touched last autumn.
The employment rate edged higher by 0.1% to 74.8% in the three months to August from the previous quarter.
A LITTLE-KNOWN investment company called Langbar International - listed on the Alternative Investment Market (Aim) and formerly known as Crown Corporation - asked for trading in its shares to be suspended yesterday while it attempts to secure evidence that it does have more than £350m deposited in overseas bank accounts, reports the Guardian.
The shares were suspended at 50p, less than a quarter of the 205p net asset value per share of the company, after some investors voiced concerns about recent stock sales.
On Tuesday it emerged that Mariusz Rybak, the company's co-founder and former executive chairman, had been steadily reducing his stake in the business. His holding was in excess of 30% in the summer but Rybak has been forced to disclose that his stake has fallen below 20% after a series of disposals.
A number of investors were concerned about his lack of support for the stock and contacted Langbar and its advisers on Tuesday.
The company subsequently decided to appoint independent accountants to scrutinise the company's assets. In so doing they are likely to check on cash deposits held in three principal bank accounts - one each in Brazil and Holland, and a third in Leeds.
Stuart Pearson, who took over as Langbar's chief executive in June, received written confirmation in July from the Banco do Brasil that the company had legal and beneficial ownership of deposits worth $660m (£377m) held in Brazil at that time.
Subsequently Pearson arranged for $294m to be transferred from Brazil to a bank account in Holland. He is now negotiating a deal to allow the balance of the Brazilian funds to be used to finance property deals on the Iberian peninsula.
The valuations relating to those deals are now being reviewed as a matter of course.IFAonline
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