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Vaccine Donations Stirring Controversy in England

By Jessie Wilkens on June 14, 2011 in Investing, UK government policies

Prime Minister David Cameron is in the hot seat again after pledging an additional £814million of taxpayers’ money to the Global Alliance for Vaccines and Immunization, run by Bill Gates. This will bring the UK’s total contribution to £1.5billion.

Disproportionate Donation

The donation will come out of the existing budget of the Department of International Development and makes Britain the largest donor to the cause. Mr. Cameron said, “There is a strong moral case for keeping our promises to the world’s poorest and helping them even when we face challenges at home.”

Mr. Gates called the pledge

“human generosity at its finest.”

The donation is actually staggeringly high when seen in comparison to what other countries have pledged. Britain’s donation is five times higher than the U.S.’s £274million pledge, 30 times above Germany’s £44million and almost 50 times higher than Spain’s £30million.

The delegation that met at the five-star London hotel gave Mr. Cameron a standing ovation for his pledge. The Prime Minister did acknowledge that his increased aid spending was “controversial” but said that the answer to cuts at home isn’t to cut more but to improve how money is spent.

Vocal Criticism

The criticism against Mr. Cameron’s move, however, was quite loud. Tory MP Peter Bone said that no one would argue about the merits of donating to vaccinate children; however, it thought it odd that Britain was giving such a disproportionate amount to aid.

As he said, “People find it very hard to understand why we are doing this when libraries are closing, lollipop ladies are being sacked, potholes need repairing and people are finding life tough.”

Others echoed his criticism. As Tory Philip Davies said, “The Prime Minister says there is a strong moral case to keep our promises on overseas aid. But there is also a strong case for keeping our promises at home – such as sending more criminals to prison. If we haven’t got money for one then we haven’t got it for the other.”

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Good News from Bank of England

By Jessie Wilkens on June 13, 2011 in British taxes, Curency, Investing, Investment Bank News

Good news from the Bank of England.  In a study they just published, they explain that interest rates will not rise, even though there is surging inflation.  They say that the rates can safely be kept at .5%.

Alleviating Consumer Fears

This should help to alleviate consumer fears that price inflation is going to continue going up at more than two times the Treasury’s 2% target.  It is common knowledge that the British are worried that they are heading into a period of “stagflation” which would mean that prices will continue rising as the economy stagnates.

The Bank says, however, that this is not the case.  In its Quarterly Bulletin, the Bank says that ‘long term inflationary expectations remain anchored by the monetary framework’

Sir Mervyn King

All eyes are on Sir Mervyn King, the Bank’s recently knighted governor.  He has repeatedly promised that he will keep rates low so that public spending can be cut without putting a damper on recovery.

The National Institute for Social and Economic Research recently showed figures that indicate a growth in the economy by .4% in February through May.

After today’s report, the Bank said,

‘there are few signs that inflationary expectations have affected price or wage setting behavior.’

The Daily Mail ends its article on the topic by saying,

“The Bank has found little evidence that recent rises in the CPI have any impact on wage settlements. It reports that ‘current wage growth remains around 2 per cent, some way below its pre-recession average rate’.

With wages frozen in the public sector and unemployment stubborn in the private sector, the Bank argues that ‘there are few signs that households are pushing for higher pay’.”

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Opening of the Sammy Ofer Wing in London

By Jessie Wilkens on June 9, 2011 in UK businesses

Next month, the National Maritime Museum in London will be opening the Sammy Ofer Wing.  This transformative £35m capital project has certainly been a long time in the making, and would not have been possible without the £21 million donation made by Sammy Ofer and the Ofer family in 2008.

Museum Chair Lord Sterling said of the grand project and of Sammy Ofer’s part in it, that it “Gives us all great pleasure that we were able to have the cornerstone ceremony for the new Wing, last year, enjoyed by Sammy and his whole family. Even in recent months, he enjoyed coming with his wife to see the Museum and took great pleasure in seeing our hopes and aspirations taking shape. Our new wing would not be possible without his generous gift of £21m.”

The new wing is scheduled to open on July 14, 2011, and it is the largest development that the National Maritime Museum has ever seen.  The new project will include an exhibition gallery that will feature temporary shows.  It will also have a permanent gallery, a restaurant and café with views of Greenwich Park, and a state-of-the-art library and archive.

The renovation and new building allows the Museum to have a new main entrance from Greenwich Park. This creates an important connection with the park and with the rest of the Maritime Greenwich World Heritage Site.

As part of the renovation, the considerable donation from Sammy Ofer, one of the Ofer brothers, has allowed the Museum to create the Voyagers Gallery.  This gallery will act as an introduction for the depth and range of the Museum’s collections.  It includes audio-visual pieces and a display of over 200 objects, many of which have never been displayed previously.

 

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Students Saddled with Massive Loans in Britain

By Jessie Wilkens on June 7, 2011 in education, Investing

It’s certainly not a good time to be a student. A recent new analysis from the Public Accounts Committee is shedding light on the staggering cost of being a student these days. They have put the student debt that they expect in four years at £70billion and they are blaming ministers for pushing education fees to £9,000.

Student Debt Boiling Over

In four years time, the student debt in Britain is supposed to go from the current £24billion to £70billion. And these numbers could easily weigh upon a student for decades after he finishes his education, keeping him from getting a mortgage or a pension.

The report pointed to ministers at the Department of Business, Innovation and Skills because they had made the assumption that universities would continue charging an average of £7,500 each year for tuition. However, this is not the reality. Most of the universities are actually charging the £9,000 maximum that they are allowed, and this is putting pressure on the already stressed student loan budget.

Outrage Over Figures

Certainly, many are expressing outrage at these figures. As Labour’s universities spokesman, Gareth Thomas said,

“The next generation of students are facing a £70billion debt bill to pay for the unfair and unnecessary decision to treble tuition fees. This is the latest independent report to call the Government’s plans into question. David Cameron and David Willetts [universities minister] need to use the coming white paper on the future of higher education to signal a substantial rethink.”

The report didn’t only shine a spotlight on the rising debt for students; it also pointed out that these issues will affect the universities, as many could be putting themselves at financial risk.

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BBC Under Spotlight for Its Spending Practices

By Jessie Wilkens on June 6, 2011 in Investing, UK businesses

The BBC seems to have gotten itself into some hot water lately. Their first class and business class travel expenses have soared by 60% during the recent financial year, even though they have quite publically pledged to cut their expenses.

Daily Spending

The information shown from the Freedom of Information Act shows that they are spending at least £2.3million each day on travel that is not in economy class both inside Britain and overseas.

Part of this increase is certainly due to the BBC’s decision to move 50% of its programming outside of London by the year 2016. Many of their executives and staff have been going back and forth between London and Manchester as they attend meetings and work on the new Media City site that will be in Salford.

Ironic Pledge to Reduce Costs

Ironically, while they have pledged to reduce costs by spending 50% of their programming budget outside of London, they are now spending a great deal on hotels, travel, taxi bills and more for staff, presenters and studio guests to make their way around the country.

For instance, the sport department will be moving to Salford, but the BBC is going to have to spend £5million to get its staff to London for the Olympic Games in the coming year.

In response to the criticism, a BBC spokesman said, “The BBC adheres to a strict expenses policy, and with specific exceptions such as long distance travel where staff are working immediately on arrival, all travel is economy class.”

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Jumping Across the Puddle with Peppa Pig

By Jessie Wilkens on June 1, 2011 in Investing, retail, UK arts, UK Youth

Peppa needs to learn a few things about American culture. That’s because this fun loving pig who loves puddles is soon going to be stepping out of England – and into American society.

Peppa Pig Stepping Out

The creators of Peppa Pig, the famous character in Britain, have signed a deal with Fisher Price that is expected to create a windfall to the tune of $1 billion for Entertainment One, which owns the rights to the animated series.

Before Christmas this year, Americans will be able to purchase all sorts of merchandise that will feature Peppa, her brother George and their friends. If the American sales are anything like the UK ones, then Entertainment One will be in the money. Just last year, Entertainment One generated £200million in sales just from Peppa toys and games.

Huge Sales Expected

Giles Willits, the finance director for Entertainment One told the Daily Mail that he thinks the sales in the U.S. will actually be “two or three times” greater. The deal, according to Mr. Willits, is set to put Entertainment One into a merchandising market that is worth £56billion a year.

The Peppa Pig series launched in the U.S. in February, and has acquired over 500,000 U.S. fans since that time. In Britain, Peppa is the 4th highest selling character toy, gaining momentum ahead of even Thomas the Tank Engine.

Time will tell how well Peppa will do in America…but she’s bound to find herself some pretty lucrative puddles in which to jump.

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Goodbye Parenthood…Hello Home Ownership

By Jessie Wilkens on May 31, 2011 in housing, Investing, Real Estate, UK real estate

If you’re a young couple starting out in England, or a single person with a dream of owning your own home – you might need to think again. That’s because research has recently dhown that two in three people have given up on their dream of home ownership.

Renters Versus Owners

A survey conducted with 8000 young adults by the National Centre for Social Research (NatCen), which was commissioned by the Halifax has found these startling statistics. The problem is due to many factors including high prices, home shortages and issues with getting a mortgage.

The researchers say that this shows that future generations will most likely remain renters, rather than home owners.

Losing the Dream of Home Ownership

According to a report published recently by Generation Rent, 77% of those polled who are aged 20-45 said that they do dream of owning a home. 64% of those people, however, feel that they will probably never actually own one.

The report from NatCen shows that one of the hurdles that is keeping young people from home ownership is the fears surrounding the potential mortgage. 84% of potential first-time home owners feel intimidated because they think that the banks don’t want to loan them money. 67% actually think that there is no reason to even apply for a mortgage.

Moving Back Home

Interestingly, these numbers are reflected in the mortgage rates for April, which saw a record low. April had 18% fewer home purchase loans than did March.

These statistics and the pursuit of home ownership are leading to many complicated decisions. The housing charity Shelter recently published a report that said that 20% of young adults have moved back with mum and dad. A similar proportion, the report has found, are giving up on the idea of having children in order to save for the home.

NatCen researcher Alison Blackwell pointed out the consequences that the pursuit of home ownership could have for the future, as she said, “The phenomenon of Generation Rent could open up a widening of the wealth gap that already exists between home-owners and non-homeowners. And people risk insufficient finances at retirement.”

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Weighing In On Strawberry Purchases

By Jessie Wilkens on May 30, 2011 in UK government policies, UK Investments, UK real estate

Next time you walk into the Asda grocery store, be prepared to have a choice about your strawberries. Do you prefer to have them weighed in imperial weight labels or in metric labels?

How Would You Like Those Strawberries?

For the first time in 16 years, shoppers will have to make this decision, as consumer research has recently indicated that 70% of supermarket shoppers at Asda are confused by the metric system and would rather have their products labeled in pounds. The same research found that 20% of shoppers said that it took them longer to shop because they were busy translating metric measurements into imperial ones.

As Asda strawberry buyer Andy Jackson told the trade magazine The Grocer,

“No one wants to order a litre of beer in the pub, so why do we have to buy 453.39g of strawberries?”

Weighing In on Measurements

At the moment, the law says that metric weights are required to be displayed. However, since there was a change in the EU law in 2007, imperial weight measurements can be used as a “supplementary indication.” The director of the British Weights and Measures Association explained that consumers do have the right to see both types of measurements when they buy their groceries.

Should the trial prove to be successful, you just might be able to buy your other fruits and vegetables in pounds and ounces as well soon.

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Facebook Dispute Grows

By Jessie Wilkens on May 25, 2011 in social media, UK Investments, UK Youth

If you’ve got a child under thirteen in the house, make sure that you hide them from Mark Zuckerberg. That’s because Zuckerberg is arguing that the under-13 ban on using the social networking site is ridiculous, and he believes the educational benefits of using Facebook mean that the restrictions should be lifted. Educational benefits?

Banning Kids on Facebook

In Britain, the under 23 crowd is currently banned from using Facebook under a voluntary “good practice” code. In America, this similar age limit is actually dictated by laws that are designed to protect young children.

Zuckerberg’s comments that he is going to “fight” to get the under 13 crowd involved have sparked some heated words in Britain. The family of 17 year old Ashleigh Hall of Darlington, County Durham, lured to her death after Peter Chapman posed as a teenager on Facebook, said, “What do they want, another tragedy before they do anything? They do not take any notice.”

Facebook Rebuttal

While Facebook says that it actively polices the profiles on the site to make sure that under 13 children aren’t registered – just last month a report showed that approximately 20% of British children aged 9-12 had Facebook pages. More than 7 million children under 13 use the site worldwide.

Mr. Zuckerberg made his plan public at a summit on innovation in California schools. He was quoted as saying, “My philosophy is that for education you need to start at a really, really young age.”

Fighting to Keep Children Away

Many have weighed in on the issue, yelling about the dangers of letting young people onto Facebook. Claude Knights, the director of child protection charity Kidscape, said that enabling children under 13 into the adult world of Facebook would mean that even more people would be “at risk of cyber-bullying and other online dangers.”
Facebook counters by saying that it has all sorts of safety controls in place. They explain that it is a parent’s responsibility to teach children about safety, just as they do about crossing the road.

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Watch Your Water Use in the UK

By Jessie Wilkens on May 24, 2011 in environment news, Investing, water bills

This summer, you just might find a very large water bill waiting for you.  That’s because those who use too much water will find themselves penalized.  They could face bills that are twice as high as usual, as actions are being taken against drought fears.  These “seasonal tariffs” could mean that your household water bill will rise by as much as £200, as the Times reports.

Water Tariffs

Interestingly enough, this tariff can only be imposed on homes that have meters.  Currently, about 37% of homes across the country are in this situation.  Water companies are hoping that these fines will cause people to think twice before using excess water for car washing, filling paddling pools and the like.

This plan is backed by the Environmental Agency and is a response to one of the driest springs since recorded water usage records were kept.  According to figures from the Met Office, April was the hottest since records began in 1910 – while March was also warmer than usual.

Hot Spring…Hot Summer

As Jonathan Powell of the Positive Weather Solutions said, ‘This year has seen an exceptional spring, with temperatures and sunshine well above average and rainfall down by a huge amount, fuelling drought worries.’

Everything has been affected by this drought.  Rivers and reservoirs are lower than normal; farmers are facing a harvest disaster after such a dry spring; the cost of certain foods like bread has also risen due to the drought conditions.

According to The Grocer, growers in East Anglia have had yields that are down 25%; French wheat is expected to be down 11.5% and German output is expected to drop by 7%.

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