How would you stimulate the uk economy?

Rustic_Ron

We read all kinds of doom and gloom in the press about the state of the economy.
We hear from the government and the opposition about what each other would/will do to make the Uk grow again.
But no one ever asks the public what we would like to see happen now.

well let me start:

I think ............... "A reduction in fuel duty and v.a.t"

I also believe Uk manufactured goods should be subject to lower V.A.T.

That's my view.:)

PaulF81

Reduce benefits across the board by 50% and use it to promote employment across the private sector.

I would also subsidise high tech industries such as aerospace, nuclear and renewables.

I would get rid of the 50p tax rate as its cost the treasury more than its raised.

DervProf

First of all, I'd take it out for a nice meal.

Afterwards, I'd take it back to my (modest) abode, and play some suitable music, and set the lights to low.

I would then gently caress it's .........


Either that, or I'd lend lots of money to anything with a pulse and stand well back.

Rustic_Ron

:money:

DervProf wrote: »

First of all, I'd take it out for a nice meal.

Afterwards, I'd take it back to my (modest) abode, and play some suitable music, and set the lights to low.

I would then gently caress it's .........


Either that, or I'd lend lots of money to anything with a pulse and stand well back.

Sounds like a plan...better than George Osbournes!

Rochdale_Pioneers

PaulF81 wrote: »

Reduce benefits across the board by 50%

How would you stimulate the economy, not contract it further.....

For me its very simple - infrastructure projects. The entire High Speed rail network, new roads, Boris island, the school projects cancelled by Gove.

Nor do we need to borrow lots. The serious investors are desperate to find a home for their cash that pays a return. Big infrastructure projects always do - both from the extra employment created during construction, and from the economic benefits in the long term when operational.

Thrugelmir

Rustic_Ron wrote: »

I think ............... "A reduction in fuel duty and v.a.t"

I also believe Uk manufactured goods should be subject to lower V.A.T.

How does a reduction in tax that get the economy growing? The money still needs to be raised from another source.

Impossible to administer. The UK no longer manufactures any white goods and little in the way of electronics. Assembly maybe but not manufacture.

There's no fairy dust to sprinkle around. It requires people to start their own business whatever it is.

Rochdale_Pioneers

Thrugelmir wrote: »

There's no fairy dust to sprinkle around. It requires people to start their own business whatever it is.

Great. Lets mandate the banks to start lending again. All sides agree that the lack of credit for SMEs is throttling the economy. We own several banks. It should be far simpler a task than when we didn't own several banks!

PaulF81

Rochdale_Pioneers wrote: »

How would you stimulate the economy, not contract it further.....

For me its very simple - infrastructure projects. The entire High Speed rail network, new roads, Boris island, the school projects cancelled by Gove.

Nor do we need to borrow lots. The serious investors are desperate to find a home for their cash that pays a return. Big infrastructure projects always do - both from the extra employment created during construction, and from the economic benefits in the long term when operational.

The only things to contract would be shares in BAT and tennents larger. Besides, cash would be available for those choosing to work. Without investment in industry, we are screwed. A posh new train line simply will not cut it.

Thrugelmir

Rochdale_Pioneers wrote: »

Great. Lets mandate the banks to start lending again. All sides agree that the lack of credit for SMEs is throttling the economy. We own several banks. It should be far simpler a task than when we didn't own several banks!

Lending doesn't create growth. Productivity does.

After the recent HPI boom there is a fixation with debt creating wealth. It doesn't. Hard work does.

SME's will only borrow if there's a return to be made. Basic financial management. A skill we've sadly lost in the past 15 years. Though keeps me occupied with plenty of trouble shooting to do.

Rochdale_Pioneers

Thrugelmir wrote: »

Lending doesn't create growth. Productivity does.

After the recent HPI boom there is a fixation with debt creating wealth. It doesn't. Hard work does.

SME's will only borrow if there's a return to be made. Basic financial management. A skill we've sadly lost in the past 15 years. Though keeps me occupied with plenty of trouble shooting to do.

The media is full of reports both direct from the SMEs and from their trade bodies of perfectly viable profitable businesses unable to access affordable credit. You mention the word "debt" - you could use the word "investment" instead, for that is what most businesses do - borrow, invest, repay. Believe me I've done enough Capex requests to understand return on investment, and luckily my PLC is cash rich so can invest as heavily as we are doing without worrying about the banks. Many others are not so lucky.

ILW

Small businesses are especially hampered by employment legislation. Many micro companies are terrified of taking on employees due to the grief that can be involved if it does not work out.