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High inflation is necessary says Bank of England Governor

The Bank of England Governor Mervyn King has said constraints on UK take-home pay is unavoidable. Speaking at the Civic Centre in Newcastle, Mr King said the current high inflation rate was necessary as the UK economy adjusts to higher commodity prices and becomes more competitive. He said inflation could rise up… More →

£100m chemical scheme maybe a UK first

PLANS to create a new £100 million chemical scheme on Teesside could generate up to 80 jobs. Solvert Limited is hoping to develop the UK’s first manufacturing facility which produces industrial chemicals from domestic and commercial waste.  Thanks to new legislation, and demand from companies keen to improve their environmental credentials, Solvert… More →

GDP decreases but region remains bullish

THE REGION’S business leaders have said sales and orders are still growing in the North East, despite yesterday’s shock contraction in the UK economy.  The UK’s economy suffered a 0.5% contraction in the last three months of 2010, according to figures released by the Office for National Statistics (ONS).  The severe weather… More →

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Was the winter freeze to blame for the economic slump?

THE Forum of Private Business reacted negatively to GDP figures illustrating that the economy shrunk by 0.5% in the final three months of 2010, following four successive quarters of growth.

The Government has blamed the bad winter weather for the slump but the Forum is arguing that slow movement on policies to improve business finance – including addressing the lack of affordable lending from banks and tackling the £24 billion in late payments owed to small firms across the UK – are the real reasons why the economy is facing a ‘double dip’ recession. 

But where do you think the problem lies and who is to blame for the contraction in the economy? Vote on this bdaily’s weekly poll!

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