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Councils may set up own banks

Councils are considering setting up their own local banks to bridge the funding gap caused by the credit crunch.

Local authorities in Essex and Birmingham are proposing to establish municipal banks to offer loans and banking services to firms and consumers in their areas.

Essex County Council is hoping to raise up to 50m to fund loans for local businesses while Birmingham City Council is considering intervening in the local mortgage market either via a direct lending arm or through partnerships with Birmingham-based lenders.

Councillor Mike Whitby, leader of Birmingham City Council, says: “The credit crunch has put intolerable pressure on small but sound businesses, clients trying to get on the property ladder and those seeking to invest in the city.”

Richard Kuzminski, proprietor of Birmingham-based Mortgages Fullstop, says: “This idea sounds a little strange but if it addresses the problem of the lack of first-time buyers, I’m all for it.”


Going all the way with Gordon

Gordon Brown and his bully boys are about to have another go at banker bashing – theyve summoned the big names in the industry to 11 Downing Street for an earful about not following base rate all the way down.And given the way that both Nationwide and Halifax retreated under political pressure over their right […]

Enact slashes legal fees 25%

Enact is reducing its legal fees by 25% to 75 as part of a Christmas offer to brokers for all remortgage cases submitted in December and January.

3-month LIBOR falls to 3.37%

In the wake of the 1% base rate fall yesterday, 3-month LIBOR has fallen today by 0.34% to 3.37%.


Guide: what you need to consider for your auto-enrolment project

In this guide, Johnson Fleming reveals what items you need to understand to gauge the impact of auto-enrolment on your business. The guide focuses on: the impact that your auto-enrolment scheme will have on you; assessing your workforce; understanding your staging date; reviewing your current provision; and modelling contribution levels and costs.


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