According to the latest survey by Lloyds TSB confidence in job prospects and safety of employment are way down compared with just a year ago.
Around 35 percent of those asked by Lloyds TSB felt that their job was less secure now than it was last year. One in ten thought their prospects were actually better now than in 2007, though this figure is 40 percent down on last year, reflecting the changing attitudes of the nation.
Added to this downbeat view was the fact that there is also an expectation of increased inflation, with costs already soaring. The people of Britain would really like to say things are looking better but they are thwarted at every turn by the look of this Lloyds TSB information.
Representatives from Virgin Money have been discussing the potential purchase of troubled Northern Rock, they being part of a larger consortium.
The plan, if accepted, will be to make an initial GBP 11 billion payment, via commercial debt providers, and then put in a further GBP 1.3 billion for fresh capital investment. At the moment Northern Rock appear to accept the proposal put before them although there are questions over the longer term risk that taxpayers would face on the outstanding debt position.
The government will no doubt acknowledge this risk but it will be mitigated in some way by the interest rate they will earn on it, bringing extra revenue in to cover the risk, to a certain extent anyway. Right now Virgin Money look like firm favourites to take the Northern rock situation on, though only time will tell if that is the case.
The head economist from Lloyds TSB has commented on the unchanged base rate announced today, explaining that it was the need to keep a lid on inflation that led to the decision.
Although there is still a real threat of further economic slowdown the Bank of England could not afford to cut the base rate again since the underlying rate of inflation is higher than it should be. As the Lloyds TSB pointed out, a further base rate cut could fuel more rises in inflation, completely the opposite of what is needed.
He went on to say that, as far as Lloyds TSB can see there will need to be more indications that the economy really is in a slowdown mode before base rates can be considered for reduction again.
