Pension rethink

Companies must contribute more to final-salary pension schemes to take the increased longevity of members into account. The plans will be outlined tomorrow by the pensions regulator. Each extra year adds 3%-4% to the cost of a pension.

Floods warning

Up to 1m homes to be built on flood plains by 2020 will be uninsurable, according to the Association of British Insurers. It said that in the past year 13 major developments had been passed, despite advice from the Environment Agency on flood risks.

Footsie flat after Bank’s warning

The FTSE 100 closed up four points at 5,788 after the Bank of England warned of tough times.

Over the past 12 months the index has fallen by 8%
Over three years the index is up by 16.6%
Over five years the index has risen by 62.8%
Photo-Me International gained most, up 42.5% to 33.5p
Bradford & Bingley fell the most, down 27.5% to 176.25p