Chancellor of the Exchequer George Osborne said he wants to see Britain’s minimum wage rise by more than inflation, as the government seeks to spread the benefits of an improving economy and rebuild support before next year’s election, Bloomberg News reported. “Because we’re fixing the economy, because we’re working through our plan, I believe that Britain can afford an above-inflation increase in the minimum wage,” Osborne said in a BBC television interview yesterday.

Punch Taverns Plc, the U.K. pub operator that’s seeking to restructure about 2.3 billion pounds ($3.8 billion) of bonds, asked noteholders to accept the final terms of a debt deal, saying the alternative is default, Bloomberg News reported. The offer, which modifies proposals published Dec. 9, will reduce the company’s borrowings by canceling some notes in return for cash payments or issues of new securities to bondholders, it said in a statement. The changes include increased interest rates on some of its debt, modified repayments on other parts and strengthened covenants.

Thousands of consumers who sent their old mobile phones to recyling site Cash4phones.co.uk have been left out of pocket after the company filed for insolvency, The Guardian reported. The website offered cash to consumers who wanted to get rid of an old phone after an upgrade, but payments were only made once handsets were received and users complained they were ultimately offered far less than originally quoted online. In some cases they reported the company failed to pay up at all.

The troubled More Than insurer RSA signalled another burst of pain ahead on the dividend yesterday as it prepares to strengthen its finances following "completely unacceptable" losses in Ireland, The Independent reported. A review of its Irish business by the accountancy firms PwC and KPMG found that "inappropriate collaboration" between the subsidiary's top executives undermined accounting controls, but said the problems were confined to Ireland. The problems were uncovered in November, forcing RSA to pump £200m into the business.

Mothercare suffered a humiliating setback to its plans for a turnaround in its UK business as the baby and childrenswear business issued a shock profit warning, The Independent reported. Its directors admitted sales in the run up to Christmas had been poor with fewer customers coming through its doors, disappointing online sales and heavy discounting affecting the bottom line.

The entire financial services industry should comply with new stricter rules governing the appointment of banking executives and directors, the City watchdog said on Tuesday as it admitted it had fallen short in vetting senior staff at the Co-operative Bank, the Financial Times reported. The backing for a drastic expansion of the new “senior persons regime” which would affect tens of thousands of senior City employees came as the regulator testified over the scandal at the Co-op Bank whose disgraced former chairman, Paul Flowers, was filmed buying illegal drugs.

The U.K. government will need to find a further £25 billion ($41 billion) of budget cuts after the 2015 election to reduce its borrowing and support a sustainable economic recovery, Treasury chief George Osborne said Monday, The Wall Street Journal reported. Mr. Osborne had previously indicated his Conservative party would seek further cuts in spending if it is returned to government after the vote, but hadn't given a specific figure. The government's planned spending for the financial year ending in March amounts to £717.8 billion. Mr.

Britain's financial regulators have launched an investigation into problems at the Co-operative Bank, including the role played by former senior managers, they said on Monday, Reuters reported. The probe could lead to fines for the bank and its former directors. Co-op Bank fell under the control of investors including U.S. hedge funds after a 1.5 billion pound capital shortfall was exposed. Its problems were exacerbated when former chairman Paul Flowers was arrested as part of an investigation into the supply of illegal drugs.

Three firms that were involved in a £3.2m scam selling carbon credits to retail investors have been ordered into insolvency by the High Court, Blue 7 Green Tomorrow reported. Global Carbon Brokering supplied carbon credits to Global Neutral, which then marketed them to the public at inflated prices, according to the Insolvency Service. Another carbon credit supplier, Future Carbon, was also wound up on the grounds of public interest. All the companies were linked with World Future, a company that raised £2.5m by selling carbon credits in a misleading way.

Bankruptcy, the last resort of the desperately indebted, is now so expensive that costs in England and Wales can easily outweigh the debts that led to insolvency, the Financial Times reported. As the UK’s hangover from years of cheap credit drags on, the government has become concerned that fees charged by the companies that manage bankruptcies are too high and it is expected to make an announcement on the subject this month.