Yesterday (5 February), the Bank of England raised rates from 3.75% to 4%. Further rises are expected to follow throughout the year.
As a result, E&Y warned bosses that the rise will lead to more cash-strapped employees trying to rip off their employers.
The pressure will increase with each rise in rates, it said.
Personal indebtedness stands at £934bn in the UK.
This is expected to grow to over £1,000bn by the summer.
The rate increase will add an average of more than £200 on an individual’s annual repayments.
‘With interest rates now on the up, more people will become trapped in a spiral of debt and could be tempted to find an easy way out’ said E&Y’s John Smart.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements