Not a certain former MP for Wolverhampton then?
Whatever.You didn't say firing up, you said log on.
The danger is that we create yet more zombie businesses which only exist to pay back debt and have no space invest and growSeems reasonable enough, on the basis that those same businesses actually received Government funds to ensure ongoing solvency.
If a business hasn't taken Government money, and has been able to remain solvent without assistance, then it should not be unreasonably penalised for being prudent.
Reward the prudent, punish the profligate.
Yep. Unfortunately, that is the path that more and more companies were heading toward before CV19 started. Irrespective of what Boris does (trying to get back on track here), the private sector HAS to make money to generate cash flow. For the next decade or so, that is going to be very difficult.That's the reality of working for a shit company.
FWIW I contact my MP with monotonous regularity about various issues. The point is to let them know that you either agree or disagree with the various actions of Government And the reasons why. Further it is urge action in respect of certain issues and to let them know they are vulnerable to the electorate. There is no point viewing yourself as being on the losing side just because your choice didn’t get elected. You have a rep, use them!You keep doing whatever it is that you do and providing for all of us. I will do what I do and you can contact your MP with your ideas.
Keep those with high capital investments going and write off much of the debt at the end.
But don’t fund businesses where there are low barriers to entry.
I feel that the banking sector are playing hard ball to pay back the government for enforcing regulation post-2008. My two banks are offering me support by opening their branches for shorter periods of the day and advising me to usse e-banking where possible. They MAY give a 3-month mortgage break (still not officially in place yet), and have given me a £350 overdraft at no cost. I already have an overdraft more than that with one bank. Because I do not have an overdraft with the other, this is of no value to me.
I am inclined to agree here. Because business is so interwoven it is virtually impossible to put in place a support measure in one place that does not have an impact elsewhere.Those are the businesses that tend to be well financed already.
To my mind, it would be immoral to support a business financially and not either a) be repaid, or b) provide that support as a purchase of equity in the business.
Governments are notoriously bad at picking winners.
Governments are run by politicians, obviously, who will pick a course of action that will see them re-elected. It has nothing at all to do with picking 'winners'.Those are the businesses that tend to be well financed already.
To my mind, it would be immoral to support a business financially and not either a) be repaid, or b) provide that support as a purchase of equity in the business.
Governments are notoriously bad at picking winners.
I also think that in this case they are genuinely trying to help.Governments are run by politicians, obviously, who will pick a course of action that will see them re-elected. It has nothing at all to do with picking 'winners'.
Taking equity is effectively nationalisation though. We’d end up with state owned zombie businesses with no real plan or means of divestment.Those are the businesses that tend to be well financed already.
To my mind, it would be immoral to support a business financially and not either a) be repaid, or b) provide that support as a purchase of equity in the business.
Governments are notoriously bad at picking winners.
The UK Government has so far put together quite a restrained sensible set of packages towards the Self Employed, Those on PAYE, Limited Companies and PLC's. The response to the crisis has been met quite measured by the government. The detail to accountants of the schemes from HMRC is quite sketchy to accountants at present and we have yet to get full guidance from our institutes and as always the devil is in the detail. I doubt whether in the long term PSBC will be to badly affected The Treasury is obviously drawing on reserves that have been set aside for a crisis of which we are now currently in.The danger is that we create yet more zombie businesses which only exist to pay back debt and have no space invest and grow
The money is going to get consumed financing irreducible cash burn; just keeping the doors open and plant serviceable so that it can be restarted. It’s not going to fund productivity. It can’t, since the businesses largely closed.
I think support to businesses is to be very focussed. Keep those with high capital investments going and write off much of the debt at the end. But don’t fund businesses where there are low barriers to entry.
Of this (sensible) I am less convinced. Well meaning for sure, but as at today, notwithstanding the declarations, nothing has actually happened. I am watching from this end of the telescope with a significant degree of interest.The UK Government has so far put together quite a restrained sensible set of packages towards the Self Employed, Those on PAYE, Limited Companies and PLC's. The response to the crisis has been met quite measured by the government. The detail to accountants of the schemes from HMRC is quite sketchy to accountants at present and we have yet to get full guidance from our institutes and as always the devil is in the detail. I doubt whether in the long term PSBC will be to badly affected The Treasury is obviously drawing on reserves that have been set aside for a crisis of which we are now currently in.