RBS, landlords, energy and Brexit

Taxpayer-owned Royal Bank of Scotland has been revealed as the worst performer in the Bank of England’s annual health check of the UK banking system. The Guardian reports that, following its failure in the Bank of England stress test, RBS has published a plan designed to bolster its financial strength by an estimated £2 billion. Barclays and Standard Chartered also struggled in the stress tests, which are based on hypothetical scenarios including house prices falling and the global economy contracting by 1.9 per cent. However, Barclays has a plan in place to strengthen its financial position. Standard Chartered said it has not needed to take any action. Sleep deprivation and its cost to the economy

Workers who struggle to sleep are costing the UK economy £40 billion a year, according to a new report. They also face a higher risk of death.

The calculation is based on sleep-deprived employees being less productive or absent from work altogether, the BBC reports. Research firm Rand Europe, which used data from 62,000 people, said the loss equated to 1.86 per cent of economic growth. Landlords

Landlords face the prospect of paying a further £6,700 towards their mortgages, according to the Daily Mail.

New buy-to-let rules due to come into force in the new year mean that many landlords will be forced to take out longer-term loans. Currently, landlords typically take out two-year deals because they’re cheap. But regulators are concerned that investors are taking on too much debt and won’t be able to cope when interest rates rise.

Energy

Following the collapse of GB Energy, it has been announced that Co-operative Energy will take on all of its 160,000 customers on their existing price tariff. The firm said it would also honour outstanding credit balances for both current and past customers.

Energy regulator Ofgem said if customers wished to change energy provider they would be able to do so without any exit charge. Ofgem selected Co-operative Energy after ‘a competitive process to get the best deal possible’. Boardroom crackdown Public and private companies could be subject to root and branch changes to the way they are run, although The Telegraph reports that critics have complained that elements of the Prime Minister’s original proposals to tighten up corporate governance have been watered down. According to The Telegraph, ‘the Government is looking to strengthen shareholders’ power over executive pay, to introduce reporting on pay gaps between bosses and workers, and to extend governance rules to large private companies, not just those listed on the stock market’. Brexit The outlook for the UK’s financial stability following the Brexit vote ‘remains challenging’ and depends on an orderly exit from the European Union, the Bank of England has said. In its Financial Stability Report the Bank said that as a result of the 23 June vote, the likelihood of risks to financial stability ‘remains elevated’. Rents

London has become so expensive that couples who are renting and wanting to start a family would need to fork out 55.6 per cent (£2,460) of their combined average monthly salary to rent an average three-bed property, according to new research by property crowdfunding platform Property Partner. 

In one year, that would mean a couple would have to pay £29,520 in rent alone before even thinking about childcare and other costs.

Finally…

According to new research released today by Gocompare.com Money, the average British household expects to spend £753 on Christmas festivities this year. Collectively that’s a staggering £21 billion splashed out on presents, food and drink, parties and decorations.

Presents for friends and families top the list of Christmas spending with an anticipated average outlay of £378 per household, followed by food and drink (£183) and, partying (£109). On average, householders estimate they will also spend £83 on buying a Christmas tree and festive decorations, pantos and other Christmas experiences.