New insurance regulations taking effect on Friday will lead to higher premiums says the chief executive of Norwich Union, the Telegraph notes.
Patrick Snowball has criticised changes that will see some 36,000 companies come under the regulation of the FSA, accusing the watchdog of unnecessary red tape and creating a "gold plated level of regulation".
"Funding the FSA's requirements will cost an extra £2.80 per policy. These are costs that will be met in the main by increased premiums," he says.
From Friday, any company selling, advising or arranging general insurance must be registered with the FSA.
LEADING ECONOMISTS might be split over whether the Bank of England will increase interests rates later this week, writes The Scotsman,adding that consumers are convinced that they will go up.
While the Institute of Economic Affairs’ "shadow" monetary policy committee (MPC) was divided yesterday, the most recent UK Consumer Barometer from Lloyds TSB reveals that 70% of UK consumers believe that interest rates will continue to climb, while 15% expect rates to remain the same with 11% expecting a drop.
Douglas Reid, head of treasury at Lloyds TSB Scotland says: "There seems to be a strong view among consumers that interest rates are still on their way up, which is at odds with the market view.
"This suggests that if the interest rate environment turns out to be more benign, inflation and employment expectations are likely to rebound.
"It could spark a burst of activity in the housing market and faster economic growth, as consumers increasingly realise that interest rates may have peaked at a low level."
CONSERVATIVES WILL TODAY pledge to save £2.3bn a year of public spending by doing away with John Prescott’s Office of the Deputy Prime Minister and replacing it with a smaller department for local government depending on the outcome of the general election, The Times writes.
The Tories add they would reduce the role of regional development agencies and stop them buying more land.
The announcement comes just days before David James, a businessman who specialises struggling companies, will issue a report claiming to have identified cost savings worth well over £30bn.
The figure is more than the £21.5bn of cost savings identified by the Government’s own waste expert Peter Gershon, the former head of the Office of Government Commerce.
James was commissioned by the Conservative Party last year to identify where money was being wasted.
He tells The Times: “The cost savings we are talking about should enable a massive cut in public spending or tax cuts.”IFAonline
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected