The future for the British high street bleak or booming..?

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A bumper Boxing Day and up to 12 million shoppers on the streets on Tuesday - but economists are still warning of gloom for the British economy in 2012.



Economist Tony Dolphin warned: "Going into 2012, the risk is that talk of austerity at home and crisis in Europe will dampen spirits to such an extent that the economy drifts into recession."

The brands gone bad in 2011

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As the British high street emerges from 2011 a shadow of its former self, Channel 4 News looks at the brands gone bust, or hanging on by a thread, at the end of a difficult year.

It has been a tough year in the world of retail. The latest government-commissioned report found that a third of high streets are failing, or as retail consultant Mary "Queen of Shops" Portas called it, "degenerating". Its forecast for coming years is not much better either - by 2014, the government estimates that less than 40 per cent of retail spending will be on the high street.

A combination of the economic crisis in the eurozone, rising unemployment, and a cultural move towards shopping online rather than on foot, has added to retailers' problems, who are trying desperately to lure back consumers.

In homage to the British high street, Channel 4 News looks at the brands that have gone bust, as well as those struggling to hold on to their place in the market - and in the hearts and minds of consumers.

BMI jobs at risk in British Airways deal

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BMI jobs could be on the line as the owner of British Airways agrees to buy the troubled airline for £172.5m, in a move that will boost BA's stranglehold on Heathrow.

International Airlines Group (IAG), which also owns Spanish carrier Iberia, will acquire up to 56 additional taking off and landing slots at Britain's biggest airport once it acquires loss-making BMI from German operator Lufthansa.

Willie Walsh, IAG chief executive, warned BMI job losses were on the horizon as the new owner will restructure the business after the deal is completed. IAG hopes it will go through in the first three months of next year, subject to regulatory approval.

Opting out of EU talks could risk 3m jobs

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Sir Richard Branson and other British businessmen urge the government to "re-engage in the decision-making process" within the EU, which they say is vital to the British economy.

HMV bids to sell live music division

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The struggling music retailer will bid to sell the live music arm of the business in an attempt to boost finances, after its half-year losses nearly doubled.

HMV Live runs 13 venues and a number of festivals, including London's Lovebox festival and Global Gathering near Stratford-upon-Avon.

The group, which recently sold off the bookseller Waterstone's, said today that HMV live would be placed under strategic review.

Shares in the company fell by 10 per cent following the news. HMV previously announced the closure of 60 shops in a bid to make £10m in savings.

The recent shift towards technology products, which has seen 144 out of 252 stores refitted, has generated growth in the company with like-for-like sales of headphones, speakerdocks and tablet computers up by 144 per cent. And in the first half of the year total company sales were up 8.2 per cent to £3.2m.

Retired judge to investigate tax write offs for top firms

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Channel 4 News understands that former judge Sir Andrew Park has been asked to look into controversial decisions by the UK tax authorities to do deals with large corporations to forgive unpaid taxes.



It's believed that Sir Andrew's investigation on behalf of the National Audit Office will cover up to ten deals struck by the taxman with companies including phone company Vodafone and the investment bank Goldman Sachs.

In one agreement with Vodafone, a potential tax bill of up to seven billion pounds was waived. That decision was subsequently criticised by a whistleblower, Osita Mba, who told the Public Accounts Committee that in striking such a deal the HMRC may have over-reached its powers.

Thomas Cook to close 200 stores

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Travel firm Thomas Cook says it will close 200 stores over the next two years after revealing losses of nearly £400m in the first part of 2011.

Uk inflation slows to 4.8 percent

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Inflation eases slightly in November for a second successive month, raising expectations that the Bank of England will be able to provide additional stimulus for the economy next year.



Slower growth in food, transport and clothing prices helped push down annual consumer price inflation to 4.8 per cent, its lowest since August.

In October inflation eased for the first time since June to 5.0 percent, from a three-year high of 5.2 per cent

The Bank of England has forecast that weak economic growth will push inflation below its 2 per cent target by the end of 2012, leading some economists to believe the bank will inject an extra £75bn into the economy in February, when its current asset purchases are completed.

"The Bank of England has been arguing for some time that consumer price inflation will fall back sharply once temporary upward pressures wane," said Howard Archer, analyst at IHS Global Insight.

High streets at crisis point

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A third of high streets are "degenerating or failing", according to a government commissioned review by TV retail expert Mary Portas.

By 2014 less than 40% of retail spending will be on the high street, according to the study, which also found that over the past decade out of town retail floorspace has increased by almost a third while in towns it has shrunk by 14%.

"I believe that our high streets have reached a crisis point. Unless urgent action is taken, much of Britain will lose, irretrievably, something that is fundamental to our society, and which has real social and economic worth to our communities," she said.

The report proposed plans for a national market day in a bid to promote indoor or outdoor markets and help drive traffic towards shops.

She also urged that licensing rules for market stalls should be relaxed to make it easier for people to set up stands in their local high street.

RBS report to blame errors and light touch controls

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A report into the failure of Royal Bank of Scotland (RBS) by the FSA will blame light-touch regulation and a catalogue of financial errors for pushing it to a taxpayer bailout in 2008.

Bodleian treasures first anglo japanese trade deal

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n our final Bodleian treasures feature, Faisal Islam assesses the significance of a 1613 trade deal between England and Japan - "of incredible importance to Britain's political and economic history".

Bank of England prepares for euro meltdown

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