PRESS DIGEST - Financial Times - Nov 13
PAY GAP FOR WOMEN NARROWS TO 22 PERCENT
Figures published by the Office for National Statistics show the gender pay gap in Britain narrowed by 0.5 percentage points to 22 percent last year. The pay gap for the public sector narrowed by one point to 21 percent, but in the private sector it increased by 0.7 points, leaving women being paid an average of 28.8 percent less than men. Harriet Harman, minister for women and equality, said she welcomed the overall narrowing but insisted it was "disappointing to see the private sector fall even further behind the public sector."
RED TAPE DELAYS NEW COMPANIES
The Conservative Party has accused the government of making a "complete mess" of the implementation of the Company Act 2006 after it was revealed that thousands of new start-up companies are witnessing a delay in their applications. John Penrose, the shadow business minister said: "It's appalling that with so many businesses going bust every single day the government is making it so much harder for new ones to start up". In response to the accusation, Ian Lucas, the business minister, said the delays are down to "data processing issues, customer and staff lack of familiarity with new requirements, and initial issues with system performance."
MYNERS BACKS INSURERS OVER EU CAPITAL RULES
Lord Myners, the City minister, is calling for the government to renegotiate proposed EU regulation in order to protect the rights of British pensioners. Speaking at the Association of British Insurers on Thursday, Myners said: "The government has a social duty to the pensioners and future pensioners of the UK, and the industry has a robust technical basis for its concerns." The EU's Solvency II rules, due to take effect in 2012, are intended to set the capital requirements of insurers at a uniform rate, but the industry fears that complicated changes to annuity rates will discourage people from saving.
COSTS CUTS BOOST BT'S EARNINGS BUT PENSION DEFICIT CASTS SHADOW
BT(BT.L) reported better than expected results, which it credited to an aggressive cost cutting strategy. However, the growing pension deficit is likely to overshadow the company's claims that it has made significant progress towards a turnaround. BT is Britain's market leader in fixed-line phones but it also has the largest defined benefit scheme. It is thought a legal move by BT pension trustees to gain clarity on the scope of the "crown guarantee" could help the telecommunications company to lower its top-up payments to the pension scheme.
RESURGENT STOCK MARKETS HELP 3I BOUNCE BACK
Private equity firm 3i(III.L) reported a return of 81 million pounds in the six months to September on Thursday, after posting a record 2.15 billion pound loss in the year to March. The group's portfolio was boosted by recovering equity markets but the effect was offset by falling earnings, weaker sterling and a pension charge. 3i shares have more than doubled in value from their March lows and investors reacted to Thursday's news by taking profits. Shares fell 11.4 pence to close trading at 267.5 pence.
