Computer glitch hits 15,000 NS&I savers-papers

Thousands of people who bought into low-risk savings certificates with the government’s savings arm have been short-changed due to failings in its computer system, according to the Times.

About 15,000 savers who cashed in index-linked savings certificates from Treasury-backed National Savings & Investments (NS&I) before maturity and not on an annual anniversary date have received less in interest than they should have.

The certificates are designed to beat inflation, as measured by the retail prices index (RPI), by a margin of interest — 1% at present. In the event of deflation, only the interest is received. Full story.....

The worst of the recession may be yet to come and world leaders are in danger of hampering the recovery, Gordon Brown will say today, according to the Times.

As he begins a week of meetings with world leaders, the Prime Minister will strike an unexpectedly gloomy note about the prospects of an upturn and will demand that fellow heads of government "sound a second-wake up call for the world economy".

Soaring oil prices, rising 75% this year, protectionist measures contributing to a 10% drop in trade and the failure of banks to start lending again could all put the recovery at risk, according to Downing Street. Full Story....

The UK housing market could be over the worst of the slump, according to a former adviser to the Treasury on the mortgage market, reports the Times.

David Miles, a new member of the Bank of England's monetary policy committee, said: "My hunch, and I put it no stronger than that, is that we have seen most of the overall aggregate house price falls."

Despite the upbeat tone, he cautioned that a rapid return to growth was unlikely but that "there are reasons for thinking that the period of the most rapid declines in output may be behind us." Full story....

Britain's Serious Fraud Office will decide whether a criminal investigation should be launched in to the 2005 collapse of carmaker MG Rover, the government said on Monday, delaying the publication of its own inquiry, reports the Guardian.

Britain's last major independent carmaker went into administration in April 2005 with debts of more than a billion pounds and with the loss of about 6,000 jobs.
"There has been a comprehensive and thorough investigation into the events which led to the company failing, workers losing their jobs and creditors not getting paid," said business minister Peter Mandelson. Full story....