Interest rates cut

BBC Radio 4's Money Box Saturday 08 December at 1204 GMT On Radio 4 and Online Read the transcript

The Bank of England's Monetary Policy Committee has cut interest rates by a quarter per cent - to 5.5% from 5.75% - the first cut in two years.

The announcement came towards the end of another week of bad news and further evidence of the credit crunch biting deeper.

But does the cut herald the start of a new trend and if so, how far could interest rates fall over the next 12 months or so?

Paul Lewis asked economist and managing director of Capital Economics, Roger Bootle, whether the Committee has made the right decision.

Further information:

UK interest rates trimmed to 5.5%

Q&A: Interest rate cut and you

Q&A: Interest rate cut

Mortgage firms react to rate cut

External links and helplines

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Saving and borrowing

If a savings account is base rate linked, interest will fall automatically

Since the rate cut was announced, the UK's two largest mortgage lenders, Halifax and Nationwide, have said they will be passing on
the full quarter per cent cut
to borrowers, but will others follow suit?

Bob Howard found out what the rate cut will mean for borrowers, and for savers.

Further information:

In Depth: Your savings and investments

External links and helplines

Web exclusive: saving and borrowing

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Banking code discrimination?

Does responsible lending mean considering the age of a customer?

Can you be refused credit simply on the grounds of your age?

Dennis Andrews, a solvent 83 year-old former company director, was refused credit when he tried to buy a new car.

Why then, have the British
Banking Association refused a seemingly common-sense amendment to the banking code which would ban this reason for credit rejection?

This is what Money Box asked, when we spoke to Eric Leenders, of the BAA and Mervyn Kohler from Help the Aged.

Further information:

Banks to keep age discrimination

Have Your Say: age discrimination

Service hurdles for older people

Anti-ageism law hits course fees

Quick guide: Age discrimination

In Depth: End of ageism?

External links and helplines

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Reward Scheme

The reward scheme allows customers to swap points for flights

People who hold some of the UK's most popular credit cards should check their statements carefully this month.

Customers with RBS/Nat West cards have been complaining to Money Box about a £3 a month fee that is now being added to the bills of those who have joined a customer reward scheme.

They claim the charge is unfair and there has been insufficient warning.

Are they right?

Chris A'Court found out.

Further information:

Card charges 'by stealth' claim

Have your say: airmiles

Airmiles switches credit cards

External links and helplines

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Family business

Husbands, wives and civil partners face changes to tax rules

The "loophole" that allows husband-and wife businesses
to cut tax bills by sharing income as dividends, will be closed for some, if proposed government regulations come into effect next April.

"Income splitting" where one member of the couple only, in fact, plays either a minimal role, or none at all, in the business, will be stopped.

Mike Warburton, tax advisor for Grant Thornton, and Neil Graham, finance director of the Professional Contractors' Group, discussed the proposed changes with us.

Further information:

Tax rules tighten on family firms

External links and helplines

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Pension figures

Pensioners incomes have risen by around a third in real terms over the past decade, according to the Office for National Statistics, though charities point out that despite the broad increases, about two million pensioners still live in poverty.

Last year male pensioners had an average weekly income of £257 whilst women received £229.

But age is a big factor - if the head of the household is under 75, a couple's income is likely to be 46% higher than those over 75.

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BBC Radio 4's Money Box was broadcast on Saturday, 08 December 2007 at 1204 GMT.

The programme was repeated on Sunday, 09 December 2007 at 2102 GMT.