London: British house prices adjusted for inflation may drop as much as 20% in the next five years as the Bank of England raises interest rates and regulators toughen lending rules, the National Institute for Economic and Social Research said.

British taxes must rise £82bn (€94.6bn) a year to balance health costs and underfunded state pension investments, an economic research body said.

A shortage of buyers sent British house prices falling in July for the first time since February, figures showed today.

IT was a better week for global stock markets, as the heavy losses racked up over the second half of June gave way to a more positive dynamic last week.

Inflation and unemployment figures and the annual meetings of British Airways and Marks & Spencer should make up for a quiet results schedule on the London market this week.

Britain’s economy grew by 0.6% in the three months to May in a sign the recovery is gaining momentum, a leading thinktank said today.

The UK government needs to find another £13bn (€14.8bn) in tax hikes or spending cuts over the next five years to help restore the UK's ailing public finances, a leading economic forecaster warned today.

The pace of the UK’s economic downturn will be revealed today with the publication of the latest official growth estimates.

UK interest rates must rise at a faster rate than currently forecast if oil prices stay permanently above $42 a barrel, research showed today.