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BBC Radio 4's Money Box
Saturday 20 October at 1204 BST
On Radio 4 and Online
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House prices in the UK will stop growing next year and could fall, but a slump is unlikely, says the International Monetary Fund (IMF).
However its latest World Economic Outlook report does argue that the UK housing market is "overpriced", and warns that any further tightening of credit conditions would have a "sizable impact" on the housing market here and in Europe.
In a newspaper interview the Chancellor, Alistair Darling, acknowledged that "unsustainable house price inflation is not good for individuals, is not good for the economy."
He predicted that the housing market would slow down, however he rejected concerns that the UK could see a repeat of the early 1990s style crash.
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MORTGAGE DEVELOPMENTS
The Council of Mortgage Lenders:
There was a sharp slowdown in mortgage lending in the UK in September
Gross lending was £30bn, 12% lower than in August
Moneyfacts:
Lenders have withdrawn 40% of their mortgage deals in the past three months
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But he did urge banks and building societies to be more cautious and responsible about how much they lend, and to take more account of borrowers' ability to repay the loan.
We spoke to Charles Collyns, deputy director, research department, IMF, and discussed the housing market with Martin Ellis, group economist, HBOS and Michael Coogan, director general of the Council of Mortgage Lenders.
Further information:
Insurance 'fronting'
Accidents happen, but what if you gave your insurer false information?
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Car insurance firms are rejecting around a thousand claims a year because they say parents and their children are lying in an effort to cut policy costs, according to the Financial Ombudsman Service.
"Fronting" happens when a young person buys and registers a car in their own name, but the insurer is falsely
told that a parent is the main driver.
It can save people hundreds of pounds on their premiums, but the consequences of being caught out can be dire.
Bob Howard reported.
Further information:
Capital gains tax
UK employees in share schemes could lose out under new CGT rules
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Opposition to the government's plans to introduce a flat rate
of capital gains tax (CGT) next April, continues to grow.
Earlier this week the UK's four main business groups: the British Chambers of Commerce, the CBI, the Federation of
Small Businesses and Institute of Directors, wrote an open letter to the Chancellor urging
him to scrap the plans.
And shadow chancellor, George Osborne, has said the Conservative party will vote against part of the forthcoming finance bill if it includes the changes.
Meanwhile, the insurance industry has warned the government that the new CGT regime would severely damage the £35bn a year investment bond industry, because it would mean different types of investments would be taxed at different rates.
Insurance-backed products, like investment bonds, would continue to be taxed at an investor's marginal rate, but so-called "mutual funds" such as unit trusts would benefit from the new lower rate of CGT.
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SAVE AS YOU EARN SCHEMES BEFORE AND AFTER
Under the current rules
Higher rate taxpayers who have held their shares for at least 2 years will pay CGT at 10%
Basic rate taxpayers who have held their shares for at least 2 years will pay CGT at 5%
After the rules change
All taxpayers will be taxed at 18% on all gains above the threshold, no matter how long they have held the shares
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And the trade association representing UK employees in share schemes, says hundreds of thousands of workers could be disadvantaged under the new rules.
Approximately 1.7 million UK employees are members of their company's Sharesave, Save As You Earn schemes.
We heard concerns from Stephen Hadrill, director general, Association of British Insurers and Fiona Downes, head of employee share ownership, Ifs ProShare
Further information:
Financial Ombudsman Service review
The deadline for responses to the call for evidence is 16 January 2008
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Consumers are being invited to help shape the future of the Financial Ombudsman Service.
FOS has asked Lord Hunt of Wirral to lead a second independent review of the organisation, focusing on the openness and accessibility of the Ombudsman Service to its wide range of customers and stakeholders.
The first independent review looked at the Ombudsman
Service's case-handling procedures and systems, and was carried out by Professor Elaine Kempson.
Her report, "Fair and reasonable: an assessment of the FOS", was published in full in July 2004.
Paul Lewis discussed the scope of this latest review with Lord Hunt.
Further information:
OTHER NEWS
Benefits and Tax Allowances
The government has set out the 2008-09 rates and allowances for income tax, national insurance contributions, working and child tax credits, child benefit/guardian's allowance and state pension and pension credit.
A full list of all the proposed increases for other benefits will be announced later this year by the secretary of state for Work and Pensions.
From April 2007 the basic state pension will rise by £3.40 to £90.70 a week.
And the smaller pension paid to a wife on her husband's contributions will go up by £2.05 to £54.35.
As announced in the pre budget report pension credit will rise to £124.05 for a single person and £189.35 for a couple.
Child benefit will go up with inflation to £18.80 for the first child and £12.55 for other children
Further information:
Tax Credit Overpayments
Following a highly critical report from the Parliamentary Ombudsman, Ann Abraham, ministers have told Parliament that they will bring in new guidance about when and how overpayments can be reclaimed.
At the moment customers have to pay the money back unless they can prove it was "reasonable" for them to assume the payments were correct, a test that has been widely criticised.
The new rules will follow further consultation.
Further information:
Northern Rock ISA concession
The government has announced that it will let people who withdrew cash from Northern Rock ISA during the recent financial market disruption - and in the process lost their tax advantages - to re-deposit that money into a cash ISA with Northern Rock or any other provider, restoring their tax advantages.
Savers wishing to restore their lost cash ISA tax advantage must by 5 April 2008 either:
a) return their funds to a Northern Rock ISA, or
b) obtain from Northern Rock a certificate for the amount of cash ISA savings withdrawn between 13 and 19 September, and present this to a new cash ISA provider when depositing the money.
This announcement applies to funds withdrawn from Northern Rock ISAs between Thursday 13 September and Wednesday 19 September inclusive.
Further information:
Northern Rock resignation
Northern Rock chairman, Matt Ridley, has stepped down over his role in the bank's near collapse.
Mr Ridley had offered to resign in September but was asked to remain in his post to testify before a parliamentary committee this week.
Northern Rock said that Bryan Sanderson would take over as chairman of the bank as soon as he has been approved by the Financial Services Authority.
Mr Sanderson is a former Chairman of BUPA and of Standard Chartered.
Further information:
BBC Radio 4's Money Box was broadcast on Saturday, 20 October 2007 at 1204 BST.
The programme was repeated on Sunday, 21 October 2007 at 2102 BST.
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