View more on these topics

GDP drop worse than expected in Q4 2011

The UK economy shrank 0.3% in Q4 2011, further than the 0.2% previously estimated, Office for National Statistics data shows.

Compared to Q3 2011 services sector output fell by 0.1%, production dropped by 1.3% and construction by 0.2%.

Cost of living was squeezed in the quarter with households’ real disposable income fell 0.2% compared to Q3.

It means disposable income fell by 1.2% over the year, the biggest drop since 1977, according to the ONS.

On the positive side consumer spending rose by 0.4% and exports grew by 1.6%.

Throughout 2011 the UK economy grew by a mere 0.7% although chancellor George Osborne predicted the UK would avoid a double dip recession last week.

In last week’s Budget the Office of Budget Responsibility revised the UK’s 2012 growth estimate upwards from 0.7% to 0.8%.

The change follows a series of drastic downgrades since 2010 when the OBR predicted the UK would be growing at a rate of 3.5% in 2012.


We’re not out of the woods yet

Despite recent optimism about the eurozone and government enticements for new-build buyers, it is still difficult to be hopeful about the prospects for mortgage growth in the next few years

Clients advised to avoid HSBC to prevent delays

Estate agents have started to advise mortgage borrowers against using HSBC because of its recent decision to cut its conveyancing panel to just 42 firms, says The Law Society. The lender made the decision in January and although customers are free to choose their own solicitor, HSBC will still use a panel firm for its […]


Employers fined £52,500 for auto-enrolment failings

By Jamie Clark, Business Development Manager The Pensions Regulator (TPR) has taken the step of naming and shaming employers that have been served County Court Judgments (CCJs) for non-payment of auto-enrolment fines. We take a look at what this means for employers, their employees and advisers Shamed into action? Sixty-four employers have been served CCJs […]


News and expert analysis straight to your inbox

Sign up