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News and views on business and the world of personal finance. Plus the very latest from the financial markets around the globe

Wake Up to Money: 21/03/2011

Bulletins

21/03/2011

BBC Radio 5 Live - Wake Up to Money, 21/03/2011

Tax revenue increases - so will we see a 'giveaway' budget?

Ernst and Young report in a preview budget that HMRC revenues are to increase, meanwhile oil prices are set to rise. We also look at household incomes.

According to the economic forecaster the Ernst & Young ITEM Club, the government's fiscal policies seem to be on track. Its preview budget report says that HMRC is due to bring in £4 billion more tax than predicted - partly because of the VAT rise. On top of that, government borrowing is due to be around £8 billion lower than previous forecasts from the Office for Budget Responsibility. Will the Chancellor give all the extra cash away in the budget, or keep it for a rainy day? We ask Andrew Goodwin, a senior economic adviser to the ITEM Club.

World oil prices look set to rise again, after the United Nations-backed intervention against Libyan leader Colonel Gaddafi. Although Libya only accounts for 2% of global oil output, it holds Africa's largest oil reserves. But what's so special about Libyan oil? Can't other regions make up the shortfall? We ask Sven Richter, head of global frontier markets at Renaissance Asset Managers.

For the past 50 years, incomes for average households have been rising steadily. In real terms, the increase has worked out at about 1.5% a year after inflation. But new research from the BBC and the Institute for Fiscal Studies shows that this trend may be over. When will incomes to start to rise again? We ask Paul Johnson, the director of the Institute for Fiscal Studies, which carried out the research. 

Telecoms giant BT is putting up its prices again - just half a year after the last increase. The company's writing to its 12 million customers to tell them that from the end of April call charges will go up by 9%. Line rental will also increase by 30p per month. In October BT put up call charges by 10%, and line rental by 50p. How can they justify the increases? We speak to Eddie Murphy, a telecoms analyst at Priory Consulting.


Text: 85058 (charged at your standard message rate). Email wakeuptomoney@bbc.co.uk.

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Wake Up to Money

21/03/2011

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