Business confidence in the UK is at its highest level in the
last 10 years, according to the Confederation of British Industry (CBI).
The news comes as the UK economy is set to grow faster than
any other Western economy, as disclosed by the Institute of Chartered
Accountants in England and Wales (ICAEW) this week.
According to a recent evaluation by the CBI, there is a
strong economic pick-up in growth in the UK, supported by a predicted growth of
1.4% for this year. Production output was 2.2% higher in September 2013
compared with September 2012 according to the Office for National Statistics,
offering credibility to claims by the CBI of a “slow and steady” economic recovery.
HSBC has also this week announced a profit surge of 30% in
the three months to the end of September. Pre-tax profit for the bank was
reported at £2.8bn and the bank cited “reasons for optimism with some evidence
of a broadening recovery” in response to their figures.
The Co-Operative bank, who have now revealed their rescue
plan (after the
discovery of a £1.5bn hole in its balance sheet, caused by bad loans and the
2009 merger with Britannia building society) which will see the Co-op
retain just 30% of shares in the bank, announced plans earlier in the week to reduce
its branch network by at least 15% by the end of 2014. While the plans are set
to enhance the bank’s internet and mobile services, there will be significant
job losses as a result of the decision.
Group executive of Co-Op bank Euan Sutherland commented to
the BBC “We do need to take the overall costs down, unfortunately [that] will
hit jobs”. Sutherland also added that he was “optimistic” about the future,
stating “We have taken a major step forward towards achieving our plan to secure
the future of the bank”.
While there are encouraging signs of recovery for the UK
economy in the statistics released this week, the news that Co-op is likely to
cut jobs while losing control of its banking arm remains to remind us of the
fragility of the UK banking sector.
Several UK banks are currently being investigated for currency
trading manipulation including HSBC, Barclays, RBS, Citigroup, Deutsche Bank
and UBS all of whom have confirmed contact with the Financial Conduct Authority
(FCA) regarding their potential role in the latest banking scandal.
Despite claims of “optimism” in the future of the UK economy
as well as promising statistics in production output and business confidence
released this week, it’s difficult to forget the LIBOR rigging, mis-selling of
PPI, money laundering and now tax manipulation scandals which remain to hinder
the confidence of consumers all over the country.
We Fight Any Claim is a claims management company committed
to reclaiming compensation on behalf of our customers who were mis-sold PPI by
their bank. Call 0844859000 or alternatively fill in an online claim form if
you’d like our help and expertise in reclaiming mis-sold PPI.
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