GORDON BROWN has been told to either cut spending or raise taxes, according to this morning's papers.
BROWN’S stewardship of the UK economy came under fire on Wednesday when the International Monetary Fund warned of flagging growth in the world's fourth biggest economy and the European Union complained about the UK budget deficit, says the Financial Times.
The IMF said higher interest rates, oil price increases and the cooling housing market had undermined the outlook for the British economy and downgraded its forecast for UK growth this year and in 2006 to 1.9% and 2.2% respectively.
The IMF had previously forecast growth of 2.6% for this year and next. Brown is sticking to the 3-3.5% forecast for 2005 delivered during his annual budget last March.
MORE THAN 2,000 financial advisers at the Co-operative Insurance Society (CIS) are threatening to stage industrial action over plans by the group to change the way they are paid, according to the Guardian.
The retail union Usdaw has described the changes as effectively requiring advisers to accept new terms or lose their jobs. The CIS denies this and has reacted angrily to plans for three short stoppages.
Stephan Pater, chief operating officer, is reported to have said the group was "very disappointed that we are facing the prospect of industrial action when our proposals are, ironically, all about preserving jobs and growing our business".
EQUITABLE LIFE is today expected to drop its £700m legal action against former auditor Ernst & Young, reports the Telegraph.
The two sides are understood to have agreed to walk away from their court battle with each side meeting costs believed to be in the region of £30m apiece. No cash will change hands and the settlement is set to be formalised at the High Court this morning.
However, the life insurer will continue its £1.7bn action against 15 former directors.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Emily Perryman on 020 7968 4554 or email [email protected].IFAonline
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till