EDINBURGH is proving an attractive location for financial services companies looking to bring work back from emerging markets and from London, according to a new report.

The city is benefiting from the creation of hubs in regional centres of the UK as emerging economies no longer offer labour cost advantages that drove firms to set up overseas.

The report by TheCityUK, which promotes financial and professional services, and McKinsey & Company, says there remains a trend for companies setting up operations such as call centres abroad.

But in recent years many financial companies have begun to “near shore”, whereby their operations are established closer to home.

Chris Cummings, chief executive of TheCityUK, said: “Our report investigated 147 location decisions made by financial services companies. What emerged is a trend to locate, and often repatriate, core business functions to the UK’s regions – creating and expanding significant service hubs for global organisations.

“JP Morgan is a great example. It has based its worldwide securities services fund administration operation and European asset pricing hub at Edinburgh Park. In a fiercely competitive market, to attract such companies is clearly a boon for job creation and the prospects of the local economy. I believe that this trend is set to grow.

“As wage differentials between the UK and Asia reduce and areas such as Edinburgh continue to provide skilled pools of flexible workers, near shoring will grow and Edinburgh will benefit.”

WHEN Harriet Harman branded Danny Alexander a “ginger rodent”, the chief secretary to the Treasury took the controversial insult on the chin.

Now a cheeky microbrewery in his Highland constituency has immortalised Harman’s scathing remark through the name of its latest beer.

Taking it all in good cheer, Alexander visited the Cairngorm Brewery in Aviemore yesterday to sample the new “Ginger Rodent” brew and unveil the company’s £1.6 million expansion plans, which include the building of a bottling plant.

The brewery raised £665,000 from Bank of Scotland, £150,000 from Highlands & Islands Enterprise and £100,000 from the European Regional Development Fund to finance the project.

Expanding the brewery and building the bottling hall is a big move for the firm, which turned over about £1.5m last year.

Managing director Samantha Faircliff said: “It is a huge step in our business life but one we felt we had to take. Our business has grown considerably since our early days and it makes sense to do our own bottling here.”

Building a bottling plant could also mark a step forward for the entire microbrewing industry in Scotland.

“We have had some very encouraging responses from other breweries thinking of entrusting their bottling to us and I am confident we will be handling the bottling requirements for a number of Scottish brewers when we become fully operational next year,” Faircliff said.

“As well as sub-contracting bottling for other breweries next year, we are looking to increase our exports, in particular in Europe, the United States and Canada, from where we have had a number of enquiries.”

After sampling the new brew, Alexander planted his tongue very firmly in his cheek and said: “I’ll maybe take a couple of bottles down to Harriet Harman for her to savour.”

Galliford Try, the building firm that owns Morrison Construction in Scotland, has reported an “encouraging” start to its financial year, with house sales up 7 per cent to £460 million, and said access to mortgages was improving.

Its construction order book remained stable at £1.6 billion as it won a number of key deals including a stake in infrastructure projects worth £500m across south-west Scotland and a £20m flood alleviation contract in Forres.

300 Comet jobs axed by Deloitte

More than 300 staff have been made redundant at stricken electricals retail chain Comet, it was announced yesterday.

Administrator Deloitte announced 330 job losses across the head office and support centres, but stressed there had been no redundancies among shop staff and all Comet’s 236 stores remained open.

BMW driving ahead to sales record

German premium carmaker BMW increased sales by 13.2 per cent last month to 157,618 vehicles, its highest ever figure for the month of October.

The firm, which also owns the British-built Mini and Rolls-Royce marques, said: “We are well on course to achieve a new sales record in 2012, despite the headwind present in some European markets.”

Sales and marketing board member Ian Robertson said growth was driven by Asia and the Americas.

Lehman creditors win £7bn divi

Unsecured creditors of the European division of former investment bank Lehman Brothers are to share a £7 billion dividend next month.

PwC partner Tony Lomas, lead administrator of Lehman Brothers International Europe, said the payment of 25.2p in the pound was at the upper end of expectations and will be made to 1,582 claimants. Claims from a further 689 counterparties with a combined value of £1.3bn have yet to be agreed.

FAST food giant Yum Brands has sold its 330-strong Pizza Hut restaurant chain in the UK to London-based venture capitalist firm Rutland Partners.

Rutland said it will commit £20 million to a £60m refurbishment programme and operate the business under a franchise deal with the US group, which also owns the KFC and Taco Bell brands.

The Pizza Hut restaurant business employs around 10,000 people across the UK. Yum is to retain the brand’s delivery arm.

Thousands of former Ethel Austin and Woolworths staff who were denied pay-outs when the companies collapsed were given fresh hope of compensation yesterday.

Shopworkers’ union Usdaw won compensation worth nearly £70 million for 25,000 former employees of both companies.

But around 1,200 Ethel Austin and 3,000 Woolworths staff were denied because they worked in stores with fewer than 20 staff.

Now the chairman of the Employment Appeal Tribunal has granted Usdaw a full hearing to their arguable case, which is different under UK law.

Usdaw national officer John Gorle said the case could have far reaching implications for all workers facing redundancy.

DISAPPOINTING updates yesterday from model specialist Hornby and toys group Character raised alarm bells for retailers ahead of the key Christmas trading period.

Hornby, which is behind Airfix and Corgi as well as its model railway brand, admitted it was “undoubtedly facing short-term challenges” as it fell to an operating loss of £265,000 in the six months to 30 September. Stripping out Olympic-themed products, Hornby said that UK sales fell 15 per cent.

It also said it was suffering from “very substantial disruption” to supplies caused by a major rationalisation programme being implemented by one of its largest suppliers in China.

The company has scrapped its interim dividend.

Character Group, which produces toys and games based on the likes of Fireman Sam, Peppa Pig and Scooby Doo, said its sales in October had shown a steep decline.

“The group now considers that it will fall materially short of its budgeted sales to Christmas and therefore, will not be in a position to achieve the market forecasts,” it said.

The company said sales of the AppGear toy range, tipped to be one of the hottest new ranges in the sector, had fallen well short of expectations.

Although Character said it was now expecting first-half results in the current financial year to be disappointing, it remained optimistic to stronger sales in 2013.

Shares in Hornby closed up 2.55p at 60.25p and in Character Group down 3.5p at 131.5p.

CHINA’S new leaders have had a bit of luck – or was it intended? Yesterday brought a raft of positive economic data regarding the Chinese economy.

Beijing has been trying to curb inflation by squeezing bank lending. Unfortunately the squeeze proved too tight and seven successive quarters of slowing activity followed. In response, Beijing has turned the fiscal and monetary taps back on. Interest rates have been cut twice this year.

Yesterday, the first bamboo shoots of recovery finally appeared, with factory output jumping to an annualised 9.6 per cent. Better still, inflation is at a three-year low, providing room for further monetary expansion. Analysts quickly raised China’s growth forecast for 2013.

However, for the once-a-decade Party Congress in Beijing, this good news is merely a respite from a longer-term problem: can China escape the so-called “Lewis Point” of economic development?

This is named after Nobel-winning Caribbean economist Arthur Lewis, who postulated that developing countries reach a critical barrier when they have used up their surplus labour, but where gains from further capital investment are absorbed by wage increases.

Nations usually remain stuck in this middle-income zone unless they can boost productivity and domestic consumption. Of the 100-odd countries at the Lewis Point in 1960, only 13 have since achieved Western-style per capita incomes. China may be populous but its “one child” policy has strangled the supply of fresh workers on which its metal-bashing export industries rely. Meanwhile, wage costs soar.

To move on, China has to raise consumption spending. But how do you get people to spend instead of saving for their old age, when there is no welfare net? And how do you boost productivity when loss-making state-owned firms still dominate half the economy?

Obama may have to act to avert airline war

A BAD week for the airline business. IAG, created last year through a merger of British Airways and Iberia, announced it was cutting a quarter of the Spanish airline’s staff and slashing routes by 15 per cent. IAG chief executive Willie Walsh warned: “Iberia is in a fight for survival”. Which rather begs the question why he wanted to merge with it. Since IAG was formed in January 2011, its shares have plummeted around 40 per cent.

Meanwhile the world’s airline business faces a ruling from the EU that it must comply with new emission rules by 30 April or face fines. The EU is capping carbon dioxide emissions for all planes arriving or departing from European airports, but allowing airlines to buy and sell “p… [+]ollution credits”, supposedly rewarding the fuel-efficient ones.

But non-EU countries (including China and America) are threatening legal action and trade retaliation unless granted exemption. It’s up to newly re-elected President Obama to avert an airline trade war.

EDINBURGH’S Avalanche Records has become the second of Scotland’s dwindling handful of independent music retailers to warn of impending closure as fans increasingly buy directly from their favourite bands online.

Avalanche, a bastion of the Scottish musical landscape, says it will pull the shutters on its Grassmarket shop on 6 January unless there is a “notable and prolonged improvement in business” in the coming months. Owner Kevin Buckle is looking at various options to keep the store in business, but concedes that Avalanche could become an online-only operation.

“The thing about independent record shops is the customers we cater to are the fans of the bands,” Buckle said. “Unfortunately, bands have become more and more proactive in selling things themselves.”

Avalanche joins One Up Records of Aberdeen, which said last month that it would close after Christmas unless trading improved. The two rank amid the largest indie music stores in Scotland – together with Monorail and Love Music in Glasgow – and are among a group of what Buckle believes to be no more than 20 “true” independent music retailers across Scotland.

Latest industry figures chart the dramatic decline in indie shops throughout the UK, whose numbers have fallen from some 900 in 2006 to just 280 last year.

They face tough competition in a market where sales have been declining for several years. The Entertainment Retailers Association estimates overall UK music sales were down 4.4 per cent in 2011 at £1.07 billion, with downloads and online services such as Amazon accounting for more than half the total.

Avalanche, which has been trading in Edinburgh’s city centre since 1983, is now manned by Buckle and a smattering of enthusiastic patrons who help out on an ad-hoc basis.

LORRY speed limits will not be increased in Scotland despite plans to raise them south of the Border, prompting criticism from Scottish business leaders.

• UK Government has raised lorry speed limits to 45-50mph on single carriageway

• Freight industry believes move would save £30m but Scottish Government will not follow suit

The UK Government’s Department for Transport today announced proposals to lift the 40mph limit on single carriageway roads to 45mph or 50mph in an attempt to boost economic growth.

It said the freight industry believed this would reduce costs by £30 million a year by improving journey times, cutting congestion, and reducing crashes caused by drivers overtaking slower lorries.

Officials added that some 70 per cent of lorries travelled at more than 40mph anyway.

However, a spokesman for the Scottish Government’s Transport Scotland agency said: “Road safety is a top priority for Transport Scotland. Under newly conferred powers in the Scotland Act, the Scottish Government now has powers to set national speed limits, including vehicle speed limits, for the nation’s roads.

“We currently have no plans to implement an increase in speed limits across Scotland’s roads, including those relating to heavy goods vehicles.

But Scottish Chambers of Commerce chief executive Liz Cameron said: “Faster journeys for lorries would mean faster journeys for everyone,

enabling improved business connectivity. This is as true in Scotland as it is south of the border, and we would urge the Scottish Government to ensure that lorry drivers aren’t slamming the breaks on at the border.

“Our members in the freight industry are frustrated that the great strides made in vehicle safety over recent decades have not been recognised by the Government in raising lorries’ speed restrictions.”

The proposed change in England and Wales would only affect lorries above 7.5 tonnes, with the 50mph limit for smaller lorries unchanged.

Chris MacRae, Freight Transport Association head of policy - Scotland, said: “We have been campaigning on this subject for some years and we remain optimistic it is something that will be considered in the future.”

Q Our son and his wife might be purchasing a house and we hope to release equity on our house to assist them. Is this legal and how is it best done? LP St Andrews

A Yes, it is legal and many parents are accessing the equity in their homes to pass on wealth to their children while they are still alive. In today’s difficult financial climate and the increasingly tighter lending criteria required by banks, one of the main reasons for releasing equity is in order to help offspring get a foot on the housing ladder.

All equity release plans basically offer a way of freeing up part of the value of your home, but there a number of ways in which you can do it. They might sound simple, but they take very different forms and whichever one you choose will not be cheap.

If you don’t want a nasty shock at some point in the future, it is essential to understand exactly what you are getting into before you sign on the dotted line and seek independent financial advice or speak to your solicitor about the contract you are about to enter. If it is not your intention to go back to the beginning with your mortgage and take out a traditional capital repayment mortgage, there are two main types of equity release plan. These are lifetime mortgages and home reversion schemes.

Lifetime mortgages

Your provider lends you a percentage of your property’s value and charges you interest on it. Many will allow you to draw down in tranches up to an agreed maximum to provide increased flexibility. However, unlike an ordinary mortgage, there are no monthly repayments and there’s no set term. The interest charged is simply added on to the original sum you borrowed.

The loan can continue until you die, when the capital, the original sum borrowed and all the interest must be repaid. You should be aware that this will be expensive and indeed the sum you originally borrowed may double as a result over a ten-year period.

It is unlikely that the situation will arise where the amount of the debt exceeds the value of your property.

Home reversion schemes

Here you are selling a percentage of your home in exchange for a lump sum or monthly income. There are specialist companies who provide this form of lending.

Unlike a lifetime mortgage there is no interest to pay on the sum borrowed. You can remain in the scheme until you die or decide to sell up, however, you continue to be responsible for all maintenance costs.

When the property is sold, the scheme provider takes their percentage of the sale price, with any remainder passing to you or your estate upon your death.

You need to be at least 65 to qualify, and it is extremely unlikely you will achieve the full market value for the percentage of the property you sell.

For example, if your home is worth £400,000 and you decide to sell a quarter share, you might expect the provider to give you £100,000. This is not the case and you should expect to receive £50,000 or even less, depending on circumstances. The above options will both provide you with the money you require and are suitable for many people. But make sure you are aware of how the contract operates and seek expert advice.

• Alan Reid is a partner at Cornerstone Asset Management LLP.

If you have a question you need answered, write to Jeff Salway, c/o The Scotsman, 108 Holyrood Road, Edinburgh EH8 8AS or email: scotsmancash@yahoo.co.uk. The above is for general purposes only and is not tailored for individual use. It does not constitute legal, financial or investment advice on any particular matter and must not be treated as a substitute for specific advice. No action should be taken in reliance of the information given. The Scotsman Publications Ltd and Cornerstone Asset Management accept no liability on the basis of this article.

Well that’s that – the endless speculation and spending is finally over and we know who the next US president will be.

Except in the end it was all quite predictable. It turns out that the polls again were miles out and it didn’t come down to four old ladies in Ohio after all. Obama walked it, as was confidently predicted over the last year by independent researchers who have studied over one hundred years of election history.

Still it filled the TV news channels for a while, keeping pessimists optimistic about doomsday scenarios. So what’s new to worry about? The so-called “fiscal cliff” anyone?

Last Thursday I was speaking at a Rotary dinner in Fife which to attract a decent audience was entitled What investors can learn from Barcelona FC.

It was built around the premise of putting together a team of fund managers among the best in their field: defence (cautious fund managers); midfield (balanced) and attack (growth). They must be at the same price as average alternatives and you can bring in new stars without transfer fees. Technological developments mean that’s exactly what investors can do to build winning pension and investment plans these days.

It turned out that my timing could have been better, given that less than seven days later Celtic beat the mighty Catalans. Doesn’t change the big picture though – that the best team wins in the long run. And the occasional loss can be the time to obtain better odds on future victories, both in markets and sport.

Anyway, knowing the bulk of the Rotarians were gloomy about prospects for the economy and stock markets, I started with the first paragraph of a speech I’d delivered at a seminar for lawyers and accountants, which went as follows: “The concern which has been shown recently over the state of markets is understandable. For those who have come into equity investment over the last few years it has been quite frightening. A commonly expressed fear is that this is Armageddon – this has never happened before! There is general concern too about the high oil price and an air of barely controlled panic has begun to show, so the purpose of the following notes is merely to put some of the current fears into perspective.”

So when do you think these words were written? Last year? 2008? That’s what the Fifers thought. In fact the speech dated from January 1991, one of the previous times when we worried about recessions and stock market falls that apparently left us with little hope. All caused by a hike in oil prices and a Middle East conflict. Just like the aftermath of an earlier Middle East war in 1973 that saw oil prices rise 67 per cent overnight on 16 October from – wait for it – $3 a barrel to $5. The ensuing panic saw the FTSE Index fall 70 per cent to a low late in 1974.

To illustrate the short term damage to investment values caused by such panics I compared the movement in values of a long running fund, the M&G Recovery. Launched in 1969, the fund is currently managed by Tom Dobell, a member of my “Barcelona“ squad. An investment of £1,000 in the fund in 1972 would have slumped to £540 by late 1974.

Left invested rather than withdrawn in panic, however, it grew to £2,000 in 1978 and by January 1991 was worth £22,229. What is it today? Check this - it would be worth over £157,000. Those brave enough to buy after the falls induced by the panic of late 1974 and who have held on are now sitting on a fund worth over £292,000.

So instead of being driven by emotional knee jerks from one perceived problem to another, why not keep your eyes fixed on the likely investment horizon?

Over in the US, the squabbling politicians will patch up their differences over funding. So look instead to the indisputable facts that the country’ is sitting on oil and gas resources that will change it and the rest of the world for years to come. A US economic boom is the next big thing, with profits and benefits even greater than those in the 1900s and 1930s. Don’t miss it.

l Alan Steel is chairman of Alan Steel Asset Management

NEW rules banning insurers from using gender in setting prices will come into force on 21 December – and they will have a huge impact on insurance contracts and annuities.

The implications will vary with gender in the move to neutrality, with women facing more expensive life cover and critical illness insurance, for example, and men set to pay more for annuities and income protection.

Here, John McKendrick, a senior independent financial adviser at French Duncan (Financial Services), offers his tips on ensuring you don’t lose out.

1 The final countdown

Women considering taking out life cover should take immediate steps to do so if they want to avoid a steep rise in premiums after 21 December. That’s because the change is set to impact disproportionately on women. Indeed, female rates for life cover are predicted to rise by more than 20 per cent, while the equivalent male rates are anticipated to rise by around 3 per cent.

2 Critical to act

The cost of critical illness cover for females over the age of 50 is also forecast to rise by more than 20 per cent when the new rules are in force. Again, the rate for men in the same age group is expected to rise by around 3 per cent only. It makes sense for everyone, especially women, to take out critical illness before this deadline.

3 Age concerns

At younger ages, under age 45, female critical illness cover rates may be higher than male rates. That’s because females have a high cancer risk at these ages. At certain older ages, male rates are generally higher because men have a higher risk of cardiovascular disease. The introduction of gender neutral pricing will see male premiums fall and female premiums rise. So while men might wish to delay taking out critical illness cover until next year, women might be advised to act without delay.

4 Income protection impact

When it comes to income protection, males should act immediately to seek cover prior to 21 December, while females should wait until after that date. That’s because female rates for income protection cover are currently significantly higher than male rates at all ages and the introduction of gender neutral pricing will see male premiums rise and female premiums fall.

5 Inherent risks

Women currently pay up to 65 per cent more on average on income protection insurance because statistically they are more likely to claim. After 21 December, female income protection premiums are expected to fall by up to 28 per cent. But although it might, on the face of it, appear tempting for women to defer applying for income protection until after 21 December, the risk associated with such deferment is that their circumstances may change in the interim, such as developing a health problem, which could make securing income protection insurance problematic.

6 Timing is everything

To make sure you’re not caught out by rising prices, it might be a good idea to speak to a financial adviser as soon as possible because although some people will be accepted immediately for cover, others might have to wait for medical reports which might run past the deadline. Quick action could ensure you can beat the rule change and save money before it’s too late.

7 Price isn’t everything

The cost counts for a lot when it comes to insurance, yet low premiums may come with cover that isn’t the most appropriate for your needs. And for a product such as income protection, the decision-making process can be more complex than for the relatively straightforward life cover. A cheap policy may ultimately be worth it, so make sure you look at all the factors, such as the product exclusions.

8 Pension penalty

The gender rules will have no direct effect on occupational pension schemes, but they will have an indirect effect insofar as the cost of purchasing annuities will increase slightly for men and by less than the corresponding reduction for women as more men purchase annuities.

Men planning to buy an annuity over the coming months may want to consider doing so before 21 December.

9 Invest in advice

Taking independent financial advice can be crucial. That’s because, rather than merely comparing premiums, IFAs will consider the quality of cover and the underlying policy provisions. They will know what to look out for and be able to advise on what’s available across the market.

10 The bottom line...

is that insurance cover in particular is going to end up costing more for everyone after 21 December. This will be made certain by the introduction on 1 January 2013 of a new corporate tax regime for life insurance companies, which will see them lose a tax break that enabled them to offer lower premiums. This will inevitably lead insurers to offset this loss by raising premiums even further.

Q Until recently, the wholesale supplier I use has sometimes been able to get organic fruit and veg for me from France, apparently it has never been possible for them to source this in Britain.

Yesterday when I phoned in my order, I was told that organic produce was no longer available due to lack of consumer interest.

My supplier is aware that there are quite a few people who live near me who are interested in placing regular orders for organic fresh food if it were available to them and I am assured that every effort has been made to source this on my behalf but to no avail.

I have been trying for years to get a reliable source of organic fruit and veg and have approached every supplier I can find in my area.

Why is organic produce so hard to find here in Dumfriesshire, except for the very limited range in the supermarkets. Is it really because no-one is interested?

JM Dumfriesshire

A spokesperson for the Soil Association replies

A The most recent Soil Association organic market report shows the global sales of organic products continue to defy the economic downturn, growing by 8.8 per cent in 2010 with growth continuing into 2011. The only exception is in the UK where, despite areas of strong growth and improvement in the long-term trend, overall sales were down by 3.7 per cent in 2011. The main reason is a 5 per cent drop in supermarket sales, 71.4 per cent of organic food sales.

But despite this, there is significant growth in organic sales through box schemes, home delivery and mail order (up 7.2 per cent to £167 million) which meant independent retail sales increased their share of the organic market to 28.6 per cent.

If you’re in a remote area, you could consider starting an Organic Buying Group – a group of people who regularly get together to buy organic food. Groups can be made up of a handful of people, or a much larger number. By pooling their buying power and ordering food in bulk, direct from farmers or suppliers, you can buy good quality food at a more affordable price. {http://www.soilassociation.org/organicbuyinggroups|http://www.soilassociation.org/organicbuyinggroups|http://www.soilassociation.org/organicbuyinggroups}

You could also consider speaking to local farms about starting a Community Supported Agriculture scheme (CSA), a partnership between farmers and the local community, providing mutual benefits and reconnecting people to the land where their food is grown. {http://www.soilassociation.org/communitysupp ortedagriculture| http://www.soilassociation.org/communitysupportedagriculture|http://www.soilassociation.org/communitysupportedagriculture|http://www.soilassociation.org/communitysupportedagriculture}

• If you have a consumer issue that you would like tackling, contact Claire Smith on (0131) 620 8511 or csmith@scotsman.com

OPPOSITion is mounting to a proposed 3p per litre hike in the price of fuel which is scheduled to be introduced in January.

Fuel campaigners say the price rise will be particularly hard hitting in the Highlands and Islands and the north of Scotland, where motorists are already paying a premium at the pumps.

Increasing fuel prices in January will mean real hardship for consumers and put further pressure on an already fragile economy, say opponents - who argue the increase, already postponed twice, should be postponed again.

SNP transport spokesman Angus Brendan MacNeil said: “People in Scotland are fed up facing the highest fuel prices in Europe, and now the UK government are complicit in a further hike of the price of petrol. It is a disgrace.

“This price hike is particularly hard on households in rural Scotland, who travel miles every day and rely heavily on their car.

“A staggering 60 per cent of the price of petrol is disappearing down the Treasury black hole. The public realise the UK government are the biggest culprits in this highway robbery.

“The Tory Lib coalition cannot deflect all the blame for prices on to oil companies or suppliers when 60 per cent of the cost goes into government coffers. Action to cut the cost of fuel is within their hands.”

Labour MP Cathy Jamieson called for cross party support for a Labour motion to postpone the fuel increase, which is tabled to be heard in Parliament on Monday.

“It cannot be right that this out-of-touch government is handing a tax break to 8,000 millionaires while middle and lower income families are hit with a fuel duty rise,” she said. “That is why Labour is calling on the Chancellor to cancel January’s planned 3p rise in fuel duty – at least until April. This could be funded if the government clamped down on tax avoidance schemes used by employment agencies, potentially saving taxpayers up to £1 billion.

“We will put this to a vote in Parliament on Monday. Labour hopes that MPs from all parties will stand up for their constituents and back our call”

Campaigners from FairFuel UK claim allowing it to now go ahead in January could lead to 35,000 job losses and hit economic growth.

Former haulier and campaign founder Peter Carroll said: “Currently the amount of tax people pay on fuel is close to 80 per cent when you take into account duty and VAT. For the good of the economy we have got to postpone the 3p rise which is due to be introduced in January.”

He said many people in Scotland are already paying over the odds for their fuel because of premiums charged by distributors to people in remote areas.

There were rumours that a number of back-bench Conservative MPs are planning to break ranks to vote against the rise in fuel duty, saying it was one of the most frequently aired concerns of constituents.

Some said the windfall received by the government by selling off the 4G frequency should be used to offset the cost of capping fuel duty.

Shadow Chancellor Ed Balls has proposed the motion to postpone the rise on duty, saying it will create hardship for small businesses and people on low to middle incomes.

Bank of Scotland customers have been hit with changes to current accounts that will leave some facing overdraft charges of more than £1,000 a year.

The Lloyds Banking Group-owned brand has introduced a new overdraft structure on its current, reward current and ultimate reward current accounts that will mean some customers paying twice or even three times as much for being deep in the red.

Fees for authorised overdrafts on the accounts still start at £1 a day. However the level of agreed overdraft at which the charge is doubled to £2 a day has been slashed from £2,500 to £2,000.

The rate is higher again for those overdrawn by £3,000 or more, with a new £3 a day charge taking the average cost of a long-term overdraft of £3,000 and above to more than £90 a month, or £1,095 a year. The cost of going overdrawn without permission remains £5 a day.

The move came three years after Lloyds sparked controversy by introducing the £1 a day charge on planned overdrafts for Halifax and Bank of Scotland customers.

A spokeswoman for Bank of Scotland said: “The overdraft pricing on these accounts, which hasn’t changed since its introduction in 2009, is clear and transparent, with no hidden charges. The change brings Halifax and Bank of Scotland back into line with the market for larger overdrafts.”

Andrew Hagger, personal finance expert at Moneycomms.co.uk, said: “For customers who are overdrawn between £2,000 and £2,500 their charges will double from £1 to £2 per day, a real kick in the teeth for those already struggling to keep on top of their finances.

“ If you’re frequently borrowing this sort of money on your overdraft it may be worth seeking a cheaper alternative.” The changes came weeks after the bank increased both the amounts by which customers in its Classic, Gold, Silver and Platinum accounts could go overdrawn without charge, and the fees levied for going above those amounts.

More banks could increase their overdraft fees as revenues come under growing pressure, predicted Kevin Mountford, head of banking at Moneysupermarket.com. “They’re having to put more money aside for PPI compensation and they face higher regulatory demands. The PPI mis-selling compensation is a victory for consumers but we’re paying for it now as banks try to offset the costs,” he said.

The problem for dissatisfied Bank of Scotland customers is that most banks still use interest rate charges on their overdrafts, rather than daily fees, Mountford added. “Lloyds Banking Group moved from an interest rate on overdrafts to the daily rates to make it easier for customers,” he said. “But with other banks still using interest rates it has added to the confusion by making it difficult to compare like for like. It makes life more difficult for consumers and hits the vulnerable the hardest.”

Hagger agreed: “Banks that have introduced daily or monthly fees instead of charging interest say it is more transparent and easier for consumers to understand. But it can be an expensive way of borrowing when compared with many other accounts which still charge interest rather than a daily fee.”

The Office of Fair Trading is expected to publish a report in mid December into the way in which current accounts are run, and could refer the banks to the Competition Commission if it believes they’ve made too little progress in improving the current accounts market.

From the original mis-selling to the claims management cowboys cashing in on the compensation bonanza, the payment protection insurance (PPI) saga is a veritable Russian doll of scandals.

Stories of the dirty tricks employed in the mis-selling of PPI are legion. Then we had the desperate legal bid by the banks to prevent them having to re-open old PPI cases.

Then the complaints handlers joined the fray, making millions by misleading people into believing they had a better chance of compensation if they used their services. As if that wasn’t enough potential consumer detriment, fraudsters got in on the act, using the promise of a possible PPI windfall in a bid to secure their personal details.

So while the banks have set aside more than £12 billion to compensate PPI mis-selling victims – a bill that could rise to £20 billion – the real cost of the scandal is immeasurable.

And there’s more to come, it appears. Some PPI providers, not content with fudging valid compensation claims, are getting their own back on the customers who dared to complain.

I heard this week from a Scotsman reader who successfully made a PPI claim through the Financial Ombudsman Service, although the provider is contesting it and no redress has yet been paid.

She had always cleared her bill on time, but the PPI case coincided with a stark change in attitude on the part of the provider, which last month cancelled her credit card and put a default mark on her credit.

It did so all because of one marginally late payment that the firm prevented her from clearing by the quickest method. Before she could repay in a way that was agreeable to the provider, however, the default was applied, leaving a six-year mark on her credit record.

It may well be mere coincidence, except it’s not an isolated case. I heard a similar tale last week and internet messageboards reveal that a number of people have suffered suspiciously harsh treatment by their banks in the wake of PPI claims.

You could write a book on the scams, rip-offs and dirty tricks associated with the PPI saga alone. Claims management companies now have their eye on the mis-selling of interest-only mortgages during the housing market boom. But the PPI scandal isn’t over yet; the stink will linger for years to come.

Investors weighing up the markets outlook will have welcomed the certainty provided by the US election this week. History even suggests it may be the best possible outcome for investors – markets typically respond most strongly following the re-election of a Democrat incumbent.

Yet the biggest challenge lies ahead, in the form of the fiscal cliff that has to be dealt with by a Democrat president and a Republican house of representatives. Failure to resolve it could hit GDP by as much as 5 per cent.

How the US market plays out over the coming months is just one of several issues preoccupying private investors. What’s the outlook for gilts? What are the chances of a resolution in the eurozone crisis? Where are the global investment hotspots? Where are the biggest gains in a low growth environment?

Fortunately, The Scotsman is this month getting some of the country’s foremost investment minds together to tackle such questions.

Our 20 November conference at Edinburgh’s Hilton Grosvenor – Markets 2012: Where to from Here? - features leading figures including Alliance Trust’s Katherine Garrett-Cox, Alan Porter of Martin Currie and Robin Angus of Personal Assets Trust.

I may be biased, but the timing of the event couldn’t be much better for anyone with an interest in the economic and investment outlook, from financial advisers to curious market bystanders.

For more information call 0131 620 8656, email: conferences@scotsman.com or visit www.scotsmanconferences.com

Barack Obama’s victory in the US election was never in doubt – according to a company that tracked the popularity of the two candidates through eBay.

Data mining specialist Terapeak’s analysis of closed eBay listings across the USA found 2,138 with Mitt Romney among its keywords and 4,180 associated with Obama – a 66 per cent eBay popularity share for the incumbent.

Among the election-related items sold on eBay this week was a truck with the world’s only State of Hawaii “Obama” licence plate. The 1994 Chevy Silverado, with a face value of less than $2,000, was sold for $10,000 to an anonymous bidder who suggested that he would donate it to the presidential library after Obama leaves office.

SINCE it first arrived in the UK 25 years ago, the Swedish furniture joint IKEA has revolutionised the way we see home furnishing.

As well as getting us all to embrace the flatpack, some would say the popularity of Ikea has meant many of us have the same sort of stuff.

But to mark its silver anniversary the shop decided to celebrate individuality and to show customers how they can customise their homogeneous homeware.

Research carried out on behalf of the store suggests the recession is leading to more people spending time at home – and that increasingly people want to give their homes the personal touch.

To illustrate the delights of customisation, graffiti artist Elph and graphic artist James Roper visited the Edinburgh store to demonstrate how a basic Lack table can be transformed into an artistic statement using techniques from comic book art and graphic design.

Working at breakneck speed, the artists spent a day transforming 25 Lack tables which are currently on display in the Edinburgh store. Customers who fall in love with the designs can enter an instore competition to win an Ikea original and take it home.

Store manager Linton Scarborough, said: “We know personalisation and individuality is an important factor in home design and at Ikea we are always looking for ways to inspire our customers and help them live a better life at home. The workshop was designed to give customers hints and tips on how they can add their own personal style to furniture.

“We think the tables Elph and James Roper have created are brilliant and really highlight how you can add your own personal touches and style to our furniture”.

THE continuing public frustration with banking scandals such as the misselling of PPI, the fixing of the Libor rate and wholesale energy prices shows no sign of abating according to Which?

The consumer organisation says more than 100,000 people have signed up to the Which? and 38 Degrees Big Change campaign, which is calling for a wholesale review of banking.

Demands include a call for a professional code of conduct for bankers, bankers who break the rules to be penalised and banks to concentrate less on selling financial products and more on what customers actually want.

Which? executive director Richard Lloyd said: “The public have had enough of being short-changed by the banks. More than 100,000 people have now joined us in calling for big change in banking. They want the parliamentary inquiry into banking to back reforms that will make banks work for customers, not bankers.

“It’s down to the politicians and bankers to pay attention to this groundswell of public feeling and urgently make the fundamental changes needed. While senior figures in the banking industry say things have changed, much more action is needed if public trust is to be restored.”

David Babbs, executive director of 38 Degrees said: “As customers and taxpayers we’re fed up. Banks need to be giving us a proper deal and behaving better.”

Beer drinkers and pub goers throughout the UK have secured a major victory in recent weeks: an online petition calling on the Government to scrap the beer duty escalator collected over 104,000 signatures. This follows a six month campaign, led by Camra, to build support for this vital issue.

The beer duty escalator is used by the Government to increase the tax on beer by 2 per cent above inflation every single year. It forces pubs to increase their prices to such an extent that punters are choosing to buy cut-price alcohol from the supermarket to drink at home instead. Since it was introduced in 2008, over 5,800 pubs have rung last orders and shut their doors for ever. Camra’s latest figures show that pub closures are on the increase with 18 now closing every week.

To put the campaign’s achievement and strength of feeling into perspective, the e-petition was only the twelfth of many thousands to pass the magic figure. Of course, that was the easy bit and we now had to make sure that the high profile Parliamentary debate rewarded to some, but not all, e-petitions once they reach the 100,000 milestone was secured.

On 1 November, the campaign got its debate and for this we are indebted to MPs who are members of All Party Beer and Save the Pub Groups who ensured those who signed the petition got a proper response. MPs debated for three hours a motion calling on the government to review the impact on the Beer Duty Escalator and to report back before next year’s budget in March.

In the debate, not a single MP spoke out in support of the escalator and the motion for a review of the social and economic impact of the escalator was passed unanimously by MPs.

As part of this review the Government needs to recognise the harm this policy is doing to well-run community pubs. The Treasury’s own projections show that the escalator will make no additional revenue from beer duty even with a yearly increase of 2 per cent above inflation for the next three years because tax increases have such an impact on demand that beer sales are falling – sales dropped 5.6 per cent in July to September 2012 alone. As a result the escalator will only serve the purpose of harming many communities across Britain when their local pub is no longer able to run a viable business.

It causes pubs to close, people to lose their jobs, less income tax, VAT and national insurance to be paid and more state benefits to be paid to those who have lost their jobs. Meanwhile, the supermarkets continue on their merry way, selling cheap hooch at below cost price and thus adding to the very problem that both the Westminster and Holyrood governments want to crack down on, that of alcohol abuse.

A full review of the excise duty system is long overdue and the timing is critical to get Government to act in time for the 2013 budget. We’re not asking for much; not for an end to war or for action to stop climate change. Just for beer duty not to increase by more than inflation.

We can but hope that the Government sees sense and stops kicking a potentially vibrant industry when it is down. Let us not forget that almost 90 per cent of the beer drunk in the United Kingdom is brewed here. How many other industries can claim that? None!!

To keep the momentum going, Camra is planning a Mass Lobby of Parliament on Wednesday 12 December. We expect 1000-plus Camra members, publicans, brewers and beer lovers to meet with their MP and ask them to support the campaign and lobby the Government to scrap the beer duty escalator.

We call upon everyone who enjoys drinking beer and values community pubs to come and join us on the day and make their voices heard by lobbying their local MP. If you want to come along and tell your MP what you think about the escalator go to www.saveyourpintlobby.org.uk to register. As well as meeting your MP there will be a chance to link up with others in your area including Camra members and publicans. There will be a rally with speakers after the lobby and of course you will be able to enjoy a well-earned pint on us.

Cheers!

l Lindsay Grant is Camra’s Scotland and Northern Ireland Director