Merger doubt

BBC Radio 4's Money Box Saturday, 1 November at 1204 BST On Radio 4 and Online Programme transcript (15 pages) 1 November 2008

The �12bn merger of Halifax Bank of Scotland and Lloyds TSB, approved on 31 October, has been called into doubt.

The Office of Fair Trading expressed its concerns that the merger would reduce competition and raise prices in mortgages, small businesses and current accounts.

Despite its fears, Trade Secretary Lord Mandelson approved the merger saying preserving financial stability was more important.

We were joined by Jim Spowart, a Scottish financier, founder of Intelligent Finance and Direct Line, who has been working on a counter bid.

Merger doubt

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House prices are back where they were in February 2006

The Monetary Policy Committee is widely expected to cut interest rates this week.

Many economists are expecting a full half of one percent reduction.

But will a cut - however radical - be enough to kick start Britain's flagging housing market?

Last week Nationwide reported that house prices in October were down nearly 15% on the year.

Earlier in the week the Bank of England warned that one in nine homeowners could fall into negative equity if prices continue to drop.

Henry Pryor, founder of the property website Primemove.co.uk, and Dr Andrew Lilico, managing director of consultancy Europe Economics gave us their views.

Affordable homes?

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The Child Support Agency was founded in 1993

From 1 November the functions of the Child Support Agency (CSA) formally transfer to a new body - the Child Maintenance and Enforcement Commission (CMEC).

The change is part of a wider shake-up in the way child maintenance is enforced.

At the heart of the new system is the idea that more parents should try to reach voluntary agreements on child maintenance, leaving the the new body - which will have beefed-up powers - to chase the toughest cases of parents who refuse to pay maintenance.

Stephen Geraghty - who was the chief executive of the CSA - is the new child maintenance commissioner at the CMEC.

He told us more about the changes.

Child maintenance

Web extra: Stephen Geraghty extended interview

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Norwich Union's exit penalties will affect about 1.3 million savers

Millions of investors who hold "with profits" bonds, endowments or pension policies received more bad news this week.

Standard Life became the latest insurer to impose exit penalties following recent similar moves from Legal and General and Norwich Union.

Bob Howard investigated and we asked David Barral, marketing director at Norwich Union, how the changes would affect policyholders.

With profits

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Most financial advisers are currently funded by commission

How do you get truly independent financial advice?

The Financial Services Authority is currently looking at this and is due to publish its recommendations later this month.

At the heart of the review is the question of whether financial advisers who make their money from commission can provide genuine unbiased guidance to consumers.

We were joined by Andrew Fisher, chief executive of the fees only financial advice firm Towry Law, and Chris Cummings, director general of the Association of Independent Financial Advisers (AIFA), the trade body for independent financial advisers.

Financial advice

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BBC Radio 4's Money Box was broadcast on Saturday, 1 November 2008 at 1204 GMT.

The programme was repeated on Sunday 2 November 2008 at 2102 GMT.

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