The Chancellor of the Exchequer has bowed to pressure and will today meet industry leaders to discuss his widely-criticised 80% hike in capital gains tax, The Telegraph reports.
Alistair Darling will meet with Britain's four biggest business groups: the CBI, the British Chambers of Commerce, the Institute of Directors and the Federation of Small Businesses.
This is a victory for the groups' leaders, Richard Lambert, David Frost, Mile Temple-man and John Wright. In an open letter to the Chancellor last week, they expressed dismay at his proposal to abolish the 10% taper relief on capital gains in favour of a flat 18% tax.
THE CHAIRMAN OF the Financial Services Authority, Sir Callum McCarthy, yesterday warned the Government against a "mad dog" response to concerns about the adequacy of financial regulation in the wake of the turmoil in credit markets and the run on Northern Rock, according to The Independent.
Speaking in Washington at the annual meeting of the International Monetary Fund, Sir Callum said that the sort of knee-jerk reaction that led to the Dangerous Dogs Act of 1991, a law which Sir Callum called "unworkable", should be avoided, and that the authorities needed to be "careful not to allow that to happen in financial services".
Sir Callum, defending the UK's chief City regulator, which has been criticised for failing to prevent the Northern Rock crisis, said he did not believe the problems in the UK originated from the split of responsibilities between the Bank of England and the FSA.
NORTHERN ROCK'S CHAIRMAN, Matt Ridley, will leave the troubled company without a "golden goodbye", The Guardian reports.
Under the terms of his contract, Mr Ridley is not eligible for any compensation on departure and will therefore leave his £315,000-a-year job without a financial package.
Mr Ridley resigned last week as chairman of the Newcastle-based bank after facing a Treasury select committee to explain Northern Rock's collapse. He was felt to have performed badly in front of the MPs in what was his first public appearance since the crisis that engulfed the Newcastle-based bank began in September.
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