The Daily Telegraph
The Daily Telegraph referred to as The Telegraph, is a national British daily broadsheet newspaper published in London by Telegraph Media Group and distributed across the United Kingdom and internationally. It was founded by Arthur B. Sleigh in 1855 as Daily Telegraph & Courier; the Telegraph is regarded as a national "newspaper of record" and it maintains an international reputation for quality, having been described by the BBC as "one of the world's great titles". The paper's motto, "Was, is, will be", appears in the editorial pages and has featured in every edition of the newspaper since 19 April 1858; the paper had a circulation of 363,183 in December 2018, having declined following industry trends from 1.4 million in 1980. Its sister paper, The Sunday Telegraph, which started in 1961, had a circulation of 281,025 as of December 2018; the Daily Telegraph has the largest circulation for a broadsheet newspaper in the UK and the sixth largest circulation of any UK newspaper as of 2016. The two sister newspapers are run separately, with different editorial staff, but there is cross-usage of stories.
Articles published in either may be published on the Telegraph Media Group's www.telegraph.co.uk website, under the title of The Telegraph. Editorially, the paper is considered conservative; the Telegraph has been the first newspaper to report on a number of notable news scoops, including the 2009 MP expenses scandal, which led to a number of high-profile political resignations and for which it was named 2009 British Newspaper of the Year, its 2016 undercover investigation on the England football manager Sam Allardyce. However, including the paper's former chief political commentator Peter Oborne, accuse it of being unduly influenced by advertisers HSBC; the Daily Telegraph and Courier was founded by Colonel Arthur B. Sleigh in June 1855 to air a personal grievance against the future commander-in-chief of the British Army, Prince George, Duke of Cambridge. Joseph Moses Levy, the owner of The Sunday Times, agreed to print the newspaper, the first edition was published on 29 June 1855; the paper was four pages long.
The first edition stressed the quality and independence of its articles and journalists: We shall be guided by a high tone of independent action. However, the paper was not a success, Sleigh was unable to pay Levy the printing bill. Levy took over the newspaper, his aim being to produce a cheaper newspaper than his main competitors in London, the Daily News and The Morning Post, to expand the size of the overall market. Levy appointed his son, Edward Levy-Lawson, Lord Burnham, Thornton Leigh Hunt to edit the newspaper. Lord Burnham relaunched the paper as The Daily Telegraph, with the slogan "the largest and cheapest newspaper in the world". Hunt laid out the newspaper's principles in a memorandum sent to Levy: "We should report all striking events in science, so told that the intelligent public can understand what has happened and can see its bearing on our daily life and our future; the same principle should apply to all other events—to fashion, to new inventions, to new methods of conducting business".
In 1876, Jules Verne published his novel Michael Strogoff, whose plot takes place during a fictional uprising and war in Siberia. Verne included among the book's characters a war correspondent of The Daily Telegraph, named Harry Blount—who is depicted as an exceptionally dedicated and brave journalist, taking great personal risks to follow the ongoing war and bring accurate news of it to The Telegraph's readership, ahead of competing papers. In 1908, Kaiser Wilhelm II of Germany gave a controversial interview to The Daily Telegraph that damaged Anglo-German relations and added to international tensions in the build-up to World War I. In 1928 the son of Baron Burnham, Harry Lawson Webster Levy-Lawson, 2nd Baron Burnham, sold the paper to William Berry, 1st Viscount Camrose, in partnership with his brother Gomer Berry, 1st Viscount Kemsley and Edward Iliffe, 1st Baron Iliffe. In 1937, the newspaper absorbed The Morning Post, which traditionally espoused a conservative position and sold predominantly amongst the retired officer class.
William Ewart Berry, 1st Viscount Camrose, bought The Morning Post with the intention of publishing it alongside The Daily Telegraph, but poor sales of the former led him to merge the two. For some years the paper was retitled The Daily Telegraph and Morning Post before it reverted to just The Daily Telegraph. In the late 1930s Victor Gordon Lennox, The Telegraph's diplomatic editor, published an anti-appeasement private newspaper The Whitehall Letter that received much of its information from leaks from Sir Robert Vansittart, the Permanent Under-Secretary of the Foreign Office, Rex Leeper, the Foreign Office's Press Secretary; as a result, Gordon Lennox was monitored by MI5. In 1939, The Telegraph published Clare Hollingworth's scoop. In November 1940, with Fleet Street subjected to daily bombing raids by the Luftwaffe, The Telegraph started printing in Manchester at Kemsley House, run by Camrose's brother Kemsley. Manchester quite printed the entire run of The Telegraph when its Fleet Street offices were under threat.
The name Kemsley House was changed to Thomson House in 1959. In 1986 printing of Northern editions of the Daily and Sunday Telegraph moved to Trafford Park and in 2008 to Newsprinters at Knowsley, Liverpool. During the Second World War, The Daily Telegraph covertly helped in the recruitment of code-breakers for Bletchley Park; the ability to solve The Telegraph's crossword in under 12 minutes was considered to be a recruitment test. The newspaper was asked to organise a crossword competition, after wh
A value-added tax, known in some countries as a goods and services tax, is a type of tax, assessed incrementally, based on the increase in value of a product or service at each stage of production or distribution. VAT compensates for the shared services and infrastructure provided in a certain locality by a state and funded by its taxpayers that were used in the elaboration of that product or service. Not all localities require VAT to be charged and goods and services for export may be exempted. VAT is implemented as a destination-based tax, where the tax rate is based on the location of the consumer and applied to the sales price. Confusingly, the terms VAT, GST, consumption tax and sales tax are sometimes used interchangeably. VAT raises about a fifth of total tax revenues both worldwide and among the members of the Organisation for Economic Co-operation and Development; as of 2018, 166 of the 193 countries with full UN membership employ a VAT, including all OECD members except the United States, which uses a sales tax system instead.
There are two main methods of calculating VAT: the credit-invoice or invoice-based method, the subtraction or accounts-based method. Using the credit-invoice method, sales transactions are taxed, with the customer informed of the VAT on the transaction, businesses may receive a credit for VAT paid on input materials and services; the credit-invoice method is the most employed method, used by all national VATs except for Japan. Using the subtraction method, at the end of a reporting period, a business calculates the value of all taxable sales subtracts the sum of all taxable purchases and the VAT rate is applied to the difference; the subtraction method VAT is only used by Japan, although subtraction method VATs using the name "flat tax", have been part of many recent tax reform proposals by US politicians. With both methods, there are exceptions in the calculation method for certain goods and transactions, created for either pragmatic collection reasons or to counter tax fraud and evasion. Germany and France were the first countries to implement VAT, doing so in the form of a general consumption tax during World War I.
The modern variation of VAT was first implemented by France in 1954 in Ivory Coast colony. Recognizing the experiment as successful, the French introduced it in 1958. Maurice Lauré, Joint Director of the France Tax Authority, the Direction Générale des Impôts implemented the VAT on 10 April 1954, although German industrialist Dr. Wilhelm von Siemens proposed the concept in 1918. Directed at large businesses, it was extended over time to include all business sectors. In France, it is the most important source of state finance, accounting for nearly 50% of state revenues. A 2017 study found that the adoption of VAT is linked to countries with corporatist institutions; the amount of VAT is decided by the state as percentage of the end-market price. As its name suggests, value-added tax is designed to tax only the value added by a business on top of the services and goods it can purchase from the market. To understand what this means, consider a production process where products get successively more valuable at each stage of the process.
When an end-consumer makes a purchase, they are not only paying for the VAT for the product at hand, but in effect, the VAT for the entire production process, since VAT is always included in the prices. The value-added effect is achieved by prohibiting end-consumers from recovering VAT on purchases, but permitting businesses to do so; the VAT collected by the state is computed as the difference between the VAT of sales earnings and the VAT of those goods and services upon which the product depends. The difference is the tax due to the value added by the business. In this way, the total tax levied at each stage in the economic chain of supply is a constant fraction; the standard way to implement a value-added tax involves assuming a business owes some fraction on the price of the product minus all taxes paid on the good. By the method of collection, VAT can be invoice-based. Under the invoice method of collection, each seller charges VAT rate on his output and passes the buyer a special invoice that indicates the amount of tax charged.
Buyers who are subject to VAT on their own sales consider the tax on the purchase invoices as input tax and can deduct the sum from their own VAT liability. The difference between output tax and input tax is paid to the government. Under the accounts based method, no such specific invoices are used. Instead, the tax is calculated on the value added, measured as a difference between revenues and allowable purchases. Most countries today use the invoice method, the only exception being Japan, which uses the accounts method. By the timing of collection, VAT can be either cash based. Cash basis accounting is a simple form of accounting; when a payment is received for the sale of goods or services, a deposit is made, the revenue is recorded as of the date of the receipt of funds—no matter when the sale had been made. Cheques are written when funds are available to pay bills, the expense is recorded as of the cheque date—regardless of when the expense had been incurred; the primary focus is on the amount of cash in the bank, the secondary focus is on making sure all bills are paid.
Little effort is made to match revenues to the time period in which they are earned, or to match expenses to the time period in which they are incurr
Bank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694 to act as the English Government's banker, still one of the bankers for the Government of the United Kingdom, it is the world's eighth-oldest bank, it was owned by stockholders from its foundation in 1694 until it was nationalised in 1946. The Bank became an independent public organisation in 1998, wholly owned by the Treasury Solicitor on behalf of the government, but with independence in setting monetary policy; the Bank is one of eight banks authorised to issue banknotes in the United Kingdom, has a monopoly on the issue of banknotes in England and Wales and regulates the issue of banknotes by commercial banks in Scotland and Northern Ireland. The Bank's Monetary Policy Committee has a devolved responsibility for managing monetary policy; the Treasury has reserve powers to give orders to the committee "if they are required in the public interest and by extreme economic circumstances", but such orders must be endorsed by Parliament within 28 days.
The Bank's Financial Policy Committee held its first meeting in June 2011 as a macroprudential regulator to oversee regulation of the UK's financial sector. The Bank's headquarters have been in London's main financial district, the City of London, on Threadneedle Street, since 1734, it is sometimes known as The Old Lady of Threadneedle Street, a name taken from a satirical cartoon by James Gillray in 1797. The road junction outside is known as Bank junction; as a regulator and central bank, the Bank of England has not offered consumer banking services for many years, but it still does manage some public-facing services such as exchanging superseded bank notes. Until 2016, the bank provided personal banking services as a privilege for employees. England's crushing defeat by France, the dominant naval power, in naval engagements culminating in the 1690 Battle of Beachy Head, became the catalyst for England rebuilding itself as a global power. England had no choice. No public funds were available, the credit of William III's government was so low in London that it was impossible for it to borrow the £1,200,000 that the government wanted.
To induce subscription to the loan, the subscribers were to be incorporated by the name of the Governor and Company of the Bank of England. The Bank was given exclusive possession of the government's balances, was the only limited-liability corporation allowed to issue bank notes; the lenders would give the government cash and issue notes against the government bonds, which can be lent again. The £1.2m was raised in 12 days. As a side effect, the huge industrial effort needed, including establishing ironworks to make more nails and advances in agriculture feeding the quadrupled strength of the navy, started to transform the economy; this helped the new Kingdom of Great Britain – England and Scotland were formally united in 1707 – to become powerful. The power of the navy made Britain the dominant world power in the late 18th and early 19th centuries; the establishment of the bank was devised by Charles Montagu, 1st Earl of Halifax, in 1694. The plan of 1691, proposed by William Paterson three years before, had not been acted upon.
58 years earlier, in 1636, Financier to the king, Philip Burlamachi, had proposed the same idea in a letter addressed to Sir Francis Windebank. He proposed a loan of £1.2m to the government. The royal charter was granted on 27 July through the passage of the Tonnage Act 1694. Public finances were in such dire condition at the time that the terms of the loan were that it was to be serviced at a rate of 8% per annum, there was a service charge of £4,000 per annum for the management of the loan; the first governor was Sir John Houblon, depicted in the £50 note issued in 1994. The charter was renewed in 1742, 1764, 1781; the Bank's original home was in Walbrook, a street in the City of London, where during reconstruction in 1954 archaeologists found the remains of a Roman temple of Mithras. The Bank moved to its current location in Threadneedle Street in 1734, thereafter acquired neighbouring land to create the site necessary for erecting the Bank's original home at this location, under the direction of its chief architect Sir John Soane, between 1790 and 1827.
When the idea and reality of the national debt came about during the 18th century, this was managed by the Bank. During the American war of independence, business for the Bank was so good that George Washington remained a shareholder throughout the period. By the charter renewal in 1781 it was the bankers' bank – keeping enough gold to pay its notes on demand until 26 February 1797 when war had so diminished gold reserves that – following an invasion scare caused by the Battle of Fishguard days earlier – the government prohibited the Bank from paying out in gold by the passing of the Bank Restriction Act 1797; this prohibition lasted until 1821. The 1844 Bank Charter Act tied the issue of notes to the gold reserves and gave the Bank sol
A mortgage loan or mortgage is used either by purchasers of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the property being mortgaged. The loan is "secured" on the borrower's property through a process known as mortgage origination; this means that a legal mechanism is put into place which allows the lender to take possession and sell the secured property to pay off the loan in the event the borrower defaults on the loan or otherwise fails to abide by its terms. The word mortgage is derived from a Law French term used in Britain in the Middle Ages meaning "death pledge" and refers to the pledge ending when either the obligation is fulfilled or the property is taken through foreclosure. A mortgage can be described as "a borrower giving consideration in the form of a collateral for a benefit". Mortgage borrowers can be individuals mortgaging their home or they can be businesses mortgaging commercial property.
The lender will be a financial institution, such as a bank, credit union or building society, depending on the country concerned, the loan arrangements can be made either directly or indirectly through intermediaries. Features of mortgage loans such as the size of the loan, maturity of the loan, interest rate, method of paying off the loan, other characteristics can vary considerably; the lender's rights over the secured property take priority over the borrower's other creditors, which means that if the borrower becomes bankrupt or insolvent, the other creditors will only be repaid the debts owed to them from a sale of the secured property if the mortgage lender is repaid in full first. In many jurisdictions, it is normal for home purchases to be funded by a mortgage loan. Few individuals have enough savings or liquid funds to enable them to purchase property outright. In countries where the demand for home ownership is highest, strong domestic markets for mortgages have developed. Mortgages can either be funded through the banking sector or through the capital markets through a process called "securitization", which converts pools of mortgages into fungible bonds that can be sold to investors in small denominations.
According to Anglo-American property law, a mortgage occurs when an owner pledges his or her interest as security or collateral for a loan. Therefore, a mortgage is an encumbrance on the right to the property just as an easement would be, but because most mortgages occur as a condition for new loan money, the word mortgage has become the generic term for a loan secured by such real property; as with other types of loans, mortgages have an interest rate and are scheduled to amortize over a set period of time 30 years. All types of real property can be, are, secured with a mortgage and bear an interest rate, supposed to reflect the lender's risk. Mortgage lending is the primary mechanism used in many countries to finance private ownership of residential and commercial property. Although the terminology and precise forms will differ from country to country, the basic components tend to be similar: Property: the physical residence being financed; the exact form of ownership will vary from country to country, may restrict the types of lending that are possible.
Mortgage: the security interest of the lender in the property, which may entail restrictions on the use or disposal of the property. Restrictions may include requirements to purchase home insurance and mortgage insurance, or pay off outstanding debt before selling the property. Borrower: the person borrowing who either has or is creating an ownership interest in the property. Lender: any lender, but a bank or other financial institution. Principal: the original size of the loan, which may or may not include certain other costs. Interest: a financial charge for use of the lender's money. Foreclosure or repossession: the possibility that the lender has to foreclose, repossess or seize the property under certain circumstances is essential to a mortgage loan. Completion: legal completion of the mortgage deed, hence the start of the mortgage. Redemption: final repayment of the amount outstanding, which may be a "natural redemption" at the end of the scheduled term or a lump sum redemption when the borrower decides to sell the property.
A closed mortgage account is said to be "redeemed". Many other specific characteristics are common to many markets, but the above are the essential features. Governments regulate many aspects of mortgage lending, either directly or indirectly, through state intervention. Other aspects that define a specific mortgage market may be regional, historical, or driven by specific characteristics of the legal or financial system. Mortgage loans are gen
Consumer price index
A Consumer Price Index measures changes in the price level of market basket of consumer goods and services purchased by households. The CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically. Sub-indices and sub-sub-indices are computed for different categories and sub-categories of goods and services, being combined to produce the overall index with weights reflecting their shares in the total of the consumer expenditures covered by the index, it is one of several price indices calculated by most national statistical agencies. The annual percentage change in a CPI is used as a measure of inflation. A CPI can be used to index the real value of wages, pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values. In most countries, the CPI, along with the population census, is one of the most watched national economic statistics; the index is computed monthly, or quarterly in some countries, as a weighted average of sub-indices for different components of consumer expenditure, such as food, shoes, each of, in turn a weighted average of sub-sub-indices.
At the most detailed level, the elementary aggregate level, detailed weighting information is unavailable, so indices are computed using an unweighted arithmetic or geometric mean of the prices of the sampled product offers. These indices compare prices each month with prices in the price-reference month; the weights used to combine them into the higher-level aggregates, into the overall index, relate to the estimated expenditures during a preceding whole year of the consumers covered by the index on the products within its scope in the area covered. Thus the index is a fixed-weight index, but a true Laspeyres index, since the weight-reference period of a year and the price-reference period a more recent single month, do not coincide. Ideally, the weights would relate to the composition of expenditure during the time between the price-reference month and the current month. There is a large technical economics literature on index formulas which would approximate this and which can be shown to approximate what economic theorists call a true cost-of-living index.
Such an index would show how consumer expenditure would have to move to compensate for price changes so as to allow consumers to maintain a constant standard of living. Approximations can only be computed retrospectively, whereas the index has to appear monthly and, quite soon. In some countries, notably in the United States and Sweden, the philosophy of the index is that it is inspired by and approximates the notion of a true cost of living index, whereas in most of Europe it is regarded more pragmatically; the coverage of the index may be limited. Consumers' expenditure abroad is excluded. Saving and investment are always excluded, though the prices paid for financial services provided by financial intermediaries may be included along with insurance; the index reference period called the base year differs both from the weight-reference period and the price-reference period. This is just a matter of rescaling the whole time-series to make the value for the index reference-period equal to 100.
Annually revised weights are a desirable but expensive feature of an index, for the older the weights the greater is the divergence between the current expenditure pattern and that of the weight reference-period. Consumer Price Index = Market Basket of Desired Year Market Basket of Base Year × 100 or CPI 2 CPI 1 = Price 2 Price 1 Where 1 is the comparison year and CPI1 is an index of 100. Alternatively, the CPI can be performed as CPI = updated cost base period cost × 100; the "updated cost" is divided by that of the initial year multiplied by one hundred. Many but not all price indices are weighted averages using weights that sum to 1 or 100. Example: The prices of 85,000 items from 22,000 stores, 35,000 rental units are added together and averaged, they are weighted this way: Housing: 41.4%, Food and Beverage: 17.4%, Transport: 17.0%, Medical Care: 6.9%, Other: 6.9%, Apparel: 6.0%, Entertainment: 4.4%. Taxes are not included in CPI computation. C P I = ∑ i = 1 n C P I i × w e i g h t i ∑
Housing Benefit is a means tested social security benefit in the United Kingdom, intended to help meet housing costs for rented accommodation. It is the second biggest item in the Department for Work and Pensions' budget after the state pension, totalling £23.8 billion in 2013–14. The primary legislation governing Housing Benefit is the Social Security Contributions and Benefits Act 1992. Operationally, the governing regulations are statutory instruments arising from that Act, it is governed by one of two sets of regulations. For working age claimants it is governed by the "Housing Benefit Regulations 2006", but for those who have reached the qualifying age for Pension Credit it is governed by the "Housing Benefit Regulations 2006", it is administered by the local authority in whose area the property being rented lies. In some circumstances council tenants in "out of borough properties", some claimants may be required to obtain Housing Benefit from the borough that placed them. For those areas where there are two or more tier local government structure, Housing Benefit is administered by the district or borough council layer of local government.
This is the council responsible for the billing of Council Tax. Additionally, local authorities in Great Britain, but not Northern Ireland, may contract out the administration of housing benefit to other local authorities, or to private companies. Council tenants' housing benefit is awarded as a rebate. Private tenants' benefit is paid to the claimant, who has the right to decide to whom payments are made, in some cases to the landlord. Local authorities reclaim the housing benefit that they have paid from the Department for Work and Pensions by means of submitting audited subsidy claims. Three subsidy claims must be completed each year, an initial estimate, a mid year estimate and a final claim; the final claim must be submitted to the DWP by 30 April. The final audited claim must be submitted by 30 November; the Department for Work and Pensions pays local councils an administration grant based on the numbers of new claims and overall case-load. The level of Administration Grant awarded is announced annually by the Department for Work and Pensions.
Some elements of the subsidy claim are subject to penalty, to encourage local authorities to control that element of expenditure. This includes the raising of overpayments. Overpayments of benefit are not funded in order to ensure that the local authority takes recovery action where appropriate. Regulation 9 of the Housing Benefit Regulations mean that Housing Benefit is only available to those who are liable to pay rent. In some cases, a member of the household, not the claimant or tenant may be treated as liable; some tenants who are liable may be treated as not liable for the purposes of housing benefit. A person's immigration status may affect their right to claim Housing Benefit. If a person who does not have recourse to public funds submits a claim, the Home Office may be informed; this could affect any future immigration applications. New or re-entrants into the country may be excluded from Housing Benefit. Capital owned by the claimant or their partner may affect entitlement. Since April 2008, new private sector benefit claimants receive housing benefit under revised rent restriction rules called Local Housing Allowance.
From April 2017 people between the ages of 18 and 21 will not ordinarily be entitled to housing benefit. There are fears. Housing benefit was transferred from the Department of Health and Social Security to local authorities in 1982; this was to coincide with increasing deregulation of the private sector rental market as it was felt at the time that local authorities would have a better understanding of local rental market conditions than the DSS. Its full transfer took place in 1989 as part of a major reform of social security legislation which saw the introduction of Income Support. Housing Benefit will only meet the pure rent costs of any liability. Central to benefit decisions is an assessment of eligible ineligible services. Eligible rent is that part of the rent paid by a person which can be covered by housing benefit. Ineligible services are the parts of the claimant's rent liability. Ineligible services include such things as the cost of heating, water rates and any general counselling and support that may be included in the rent charged but will not be met by Housing Benefit.
The payment of the benefit is centred on the concept of a benefit week, a seven-day period running from a Monday to a Sunday. Housing Benefit may be paid on a weekly, lunar monthly or calendar monthly basis. Housing Benefit paid to landlords is paid four weeks in arrears. Regulations require local authorities to take into account the needs of the claimant when deciding on the frequency of benefit payments, however due to the complexity of calculating a calendar monthly payment and any overpayments that arise, most local authorities pay benefit fortnightly to claimants and four weekly to landlords. For claimants not on a "passported benefit", the concept of a benefit week is important as benefit will only be paid from the start of a tenancy if the form i