How would you stimulate the uk economy?

grizzly1911

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!

Only any good if the investment is going to generate a return both for the borrower and lender.

No point lending it if it can't be recovered.

Banks aren't the vehicle for that form of risk taking.

Percy1983

ILW wrote: »

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.

I will say running a business now, currently I have no need to employ another the thought of it does make me shudder.

Mrs_Arcanum

Unlike the 80s it seems the only business working for yourself is BTL, everyone else seems to want an employer.

More and better encouragement for entrepreneurs.
Cut the fuel duty - this will reduce prices due to lower transportation cost and at least temporarily give people a breather even if fuel costs have to go back up later.
Invest in transportation - roads, buses & rail & trams (or similar). This provides jobs and stimulates local areas to invest in housing. All too often the housing or industry comes first then we get the roads; a bit of cart before the horse IMHO.
Encourage banks to lend on mortgages more.

Thrugelmir

Rochdale_Pioneers wrote: »

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.

Ok, give me example for an SME of a suitable capex project that would fundable.

I'm sure your PLC is plenty of debt too. The majority do. As cash itself does not make a return.

dori2o

Increase the tax rate for anyone earning over £500k to 60%, over £750k to 70% and over £1m to 80%. (you don't need all this money, it's nothing more than a luxury)

Abolish working tax credits and increase the NMW to at least £8.50. (making working more attractive)

Increase the Personal Tax Allowance to £12500 for those below the age of 65, and £15000 for those 65 and over. (reducing administration costs)

Abolish NI and increase the BR of tax to 25% and the 40% rate to 42% to compensate.

Reduce the rate of corporation tax. (to pay for the NMW increase)

Bring in the mansion tax.

Change Stamp duty so the responsibility falls on the seller, not the buyer (it would take into account purchase price/depreciation/modifications etc. This would redress the balance for FTB's and those who are sitting on massive equities due to the boom in house prices.

Restrict the highest salaries of anyone working in the civil service or a state owned organisation. i.e. RBS restrict the highest salary to £250k with no bonus to be of a value more than 25% of the salary per annum.

Bring back basic utilities under state control. Transport, Energy, Petrol.

Reduce fuel duty by 50%. Get the country moving again.

Subsidise rail freight and encourage (subsidise) road freight to travel during the nights.

Free full time education (including before and after school clubs) from birth. Removing the need for extortionate costs to be paid out in tax credits for childcare.

Reduce the retirement age and make it compulsary. As those at the older end retire it opens opportunities for those leaving school/college/university.

Abolish child benefit and include it in the Child Tax Credits payments.

HAMISH_MCTAVISH

Thrugelmir wrote: »

example for an SME of a suitable capex project.

I do some business mentoring for small businesses through a local organisation on a voluntary basis.

I see people with established, profitable, small businesses, with many years of accounts/tax returns and viable business plans, being refused funding for expansion all the time.

And when it is offered, it tends to be on terms so onerous that nobody in their right mind would accept.

Thrugelmir

HAMISH_MCTAVISH wrote: »

I see people with established, profitable, small businesses, with many years of accounts/tax returns and viable business plans, being refused funding for expansion all the time.

Plenty of venture capital available or business angels. If the idea is that good. Banks aren't the only source.

Thrugelmir

HAMISH_MCTAVISH wrote: »

I do some business mentoring for small businesses through a local organisation on a voluntary basis.

In sales or marketing by any chance?

Certainly not in finance.

HAMISH_MCTAVISH

Thrugelmir wrote: »

In sales or marketing by any chance?

Certainly not in finance.

Proud to not be a bankster.

My background is management and management consulting.

I provide mentoring on operational management for the transition from small to medium sized enterprises. These are all relatively small entities with turnover of less than £5m p/a.

Graham_Devon

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 high speed rail project is a difficult one though. Yes it's a big project, but it's going to be very expensive to use for the populace.

Infrastructure projects are OK, but they require people to be able to pay to use the service once it's running....be that the government paying for the schools and such like or the public paying for the services built.

When we are in the situation that we are in, and incomes declining and prices rising, reliance on these sorts of projects isn't always the answer.

Dubai built loads of these types of projects. But look at them now. If people don't have the money, the projects are pretty worthless.