PRESS DIGEST - Financial Times - August 30

Financial Times

VENDORS ADOPT EXTREME TACTICS TO FINALISE LONDON HOUSE SALES

People attempting to sell high-value homes in London's stalling housing market have reportedly started spending hundreds of thousands of pounds on properties that they do not actually want in order to guarantee the completion of a sale. In London, where house prices have been falling for around a year, there has a fall in the number of cash buyers, leaving vendors facing longer chains. Rather than waiting for chains to clear, some home sellers are buying the houses of those further down in order to guarantee that the chain does not break. One homeowner engaged in such a process said that she had only been able to sell her house for 450,000 pounds by buying an apartment at the bottom of the chain for 200,000.

DARLING UNDER PRESSURE TO EASE JITTERS OVER TAX

The Chancellor has come under increased pressure over tax after the CBI called for "dramatic action" to restore confidence in the stability of the UK's tax system, following the news that more companies are planning to transfer their tax base overseas. Shadow Chancellor George Osborne also accused Alistair Darling of damaging the UK after Regus (RGU.L: Quote, Profile, Research, Stock Buzz) became the third business in one week to change its tax base. Mr Darling hit back at the comments, suggesting that Mr Osborne's criticism of British tax competitiveness was "wrong" and cited favourable findings in surveys by international bodies.

DEMANDS FOR NEW LAW ON DATA LOSS

The National Consumer Council has asked the government to request that banks and businesses notify customers if their personal data has been put at risk by security breaches. The call came after the news that computer equipment containing the personal information of one million banking customers was sold on eBay for £35. Anna Fielder, a senior policy officer with the NCC, said that the UK does not have legislation compelling firms to alert their customers, unlike in the US. "The consequences of identity theft can be devastating both financially and emotionally for victims, that's why the law is needed", she said.

MORE SUPPLIERS RAISE ENERGY BILLS

Scottish Power and Npower have both announced increases in their gas and electricity prices, becoming the last of the six main suppliers in the UK to do so. Scottish Power has said that gas bills will rise by 34 per cent and electricity by nine per cent, while Npower increased gas by 26 per cent and electricity by 14 per cent, effective immediately. Both energy companies have blamed the increases on the knock-on effect of oil price rises, with Npower adding that the massive increase in wholesale costs made current pricing unsustainable. Scottish Power offered similar reasons, stating: "We're sorry we couldn't hold on any longer."

STERLING TUMBLES AS RECESSION FEARS GROW  Continued...