Bank of England raises UK interest rates to 5.25%

The UK’s interest rate has been raised to 5.25% by the Bank of England as it continues to try and bring inflation under control.

The Bank’s Monetary Policy Committee (MPC) increased the rate by 0.25% from 5% – the 14th increase in a row. It is a 15-year high for the base rate, which was last at this level in April 2008.

Vicky Pryce, Economic Advisory Council member at the British Chambers of Commerce (BCC), said: ‘While many firms will have already factored this increase into their plans, it is clear from the recent rise in insolvencies that the economic environment is becoming stacked against smaller firms. They are the ones with less cash reserves in the bank and greater exposure to finance.

‘And there is now a real danger that the economy could be pushed into recession as it takes 18 months for changes in interest rate rises to filter through. With all the cumulative pressure of past rises yet to come, business will be watching closely for any further indications on the Bank’s plans.’

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£177.6 million lost to impersonation scams in 2022

£177.6 million was lost to impersonation scams in 2022, data published by trade association UK Finance has revealed.

The data showed that there were 45,367 cases of impersonation scams in 2022. It also revealed that just 51% of individuals always check whether a request for personal data or money is legitimate. Just 38% of 18–34-year-olds always checked, according to UK Finance’s research.

Impersonation scams involve criminals pretending to be a trusted organisation such as a utility company, your bank or the police, and often begin with an email, text or call with a request for money or personal information.

UK Finance says individuals should stop and take a moment to think before parting with money or information; challenge any unsolicited communication; and protect themselves and their finances by contacting their bank immediately if they think they’ve fallen for a scam.

‘Anyone can be caught out by a scam in the heat of the moment and criminals are constantly adapting their tactics to appear legitimate,’ said Katy Worobec, Managing Director of Economic Crime at UK Finance.

‘It has never been more important to take steps to check for genuine communication and follow the advice of the Take Five to Stop Fraud campaign and to stop, challenge and protect.’

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Smartphone cheque pay-in system gets Government approval

27 Jun 2014

Legislation is being planned to enable people to pay in cheques via their smartphones, rather than having to go in person to a bank.

Under a new system currently being trialled, customers will be able to photograph a cheque using a smartphone and then send it electronically. The new technology will allow cheques to be cleared in two days, rather than the current six, and banks believe that the system could actually be more secure than paying in physically.

During consultation the idea has been ‘broadly welcomed’ and will now be included in planned new legislation.

Barclays – who have run a successful trial of the system – claim that up to £300m of cheques in the UK are never paid in each year, in part due to the inconvenience for people of having to get to a bank during opening hours. Spokesman Steven Roberts said: “This is an opportunity to move cheques into the 21st Century, to reduce costs and make banking easier and more convenient for customers.

“We look forward to working closely with other banks, industry groups and the Treasury to make this a universal nationwide service as quickly as possible, so that all customers with a cheque to deposit can do so through their phone, tablet, branch or self-service device, regardless of who they bank with.”

Bank customers will still have the option of paying in paper cheques at bank branches, cash machines, post offices and by post.

Details of when the new imaging system will be available are yet to be finalised.

Green light for new plastic banknote

18 Dec 2013

New plastic banknotes will enter circulation from 2016, signalling the beginning of the end for the UK’s traditional paper notes, the Bank of England is expected to confirm.

The Central Bank has been consulting on plans to switch to polymer notes since the summer, and its findings are due to be published later today.

It is believed that the new notes will be introduced one denomination at a time, starting with the £5 note featuring Sir Winston Churchill in 2016. This could be followed by the £10 note, probably in 2017, on which Jane Austen will replace the face of Charles Darwin.

The notes will continue to feature the Queen and retain their current colouring.

As well as reducing the impact on the environment, the Bank of England believes that the new polymer notes would be more difficult to replicate, thus reducing the number of counterfeits in circulation.

Experts at Threadneedle Street also claim the notes will be more hygienic and hard-wearing, with the ability to be wiped clean and survive a hot wash.

The plans are being championed by the Governor of the Bank of England, Mark Carney, who launched a consultation on the idea shortly after taking up his post in the summer.

Plastic banknotes are already being rolled out in Carney’s native home of Canada, while Australia has been using the notes for more than two decades.