UK economy

Bank of England warns of economic crash and unemployment spike

The UK economy will nosedive this year while unemployment soars, the Bank of England has predicted in a bleak forecast.

GDP will contract by 25% in the second quarter, leading to a 14% fall in GDP growth for 2020 as a whole. Unemployment will hit 9% before gradually falling back to more normal levels by 2022.

The UK’s GDP is set to plunge – but recovery may be quicker than in other countries

The UK’s economic output could fall by 35% in the second quarter of the year if the current lockdown restrictions remain in place, according to analysis from the Office of Budget Responsibility (OBR).

The figure is one of the OBR’s assumptions as part of its analysis focused on the impact of coronavirus on public borrowing and debt. Therefore, the figure should be seen as a “reference scenario” rather than a forecast.

Sajid Javid resigns as chancellor amid Cabinet reshuffle

Sajid Javid has stepped down as chancellor of the Exchequer as prime minister Boris Johnson reshuffles his Cabinet.

Javid resigned, despite being given the opportunity to stay in his post, because Johnson demanded that he sack his team of aides.

Rishi Sunak will replace Javid as chancellor. Sunak was first elected to Parliament in 2015, and previously served as chief secretary to the Treasury, the second in command to the finance minister, overseeing public spending.

11 investment trusts for a £10,000 annual income

With interest rates at rock bottom, it is not surprising that many investors have seen buy-to-let property as one of the best ways to generate income. However, a tax squeeze in 2017 has dented landlords’ profits and hit the sector.

Why investors should look beyond the FTSE 100 index

In the immediate aftermath of the 2016 referendum, investors would have baulked at the idea of a hard Brexit; three long years later, gasping for any resolution to the tortured political process, they welcomed the certainty provided by an emphatic victory for Boris Johnson’s Conservative Party. The gloom finally started to lift for UK shares.

What is the post-election reality for investors?

Santa rally or election elation? The UK stockmarket posted its biggest gains for more than three years in the week following Boris Johnson’s landslide election victory on 12 December, despite a simultaneous jump in the value of sterling that might have been expected to hit large firms with hefty international earnings.

10 shares to deliver a £10,000 annual income in 2020

Over the past five years, we have been building a shares portfolio to generate £10,000 of annual income. It hasn’t been easy, but except during a blip in 2018, investors have been rewarded with a decent mix of capital growth and income.