4:30pm Thursday 15th January 2009
By Chris Slocock
I have real concern about the rising doom-and-gloom which has been voiced by many, including the British Chambers of Commerce (BCC) following a recent economic survey.
We will come out of this difficult time when everyone gets back to doing what they would normally do, but the real tragedy is the banks now see the economy and business as a risk - if only the squandered billions had been directed responsibly!
This Government have been in denial for years and allowed the financial structure to go into melt down at our expense! Someone has got to get their attention. BCC are meeting at a very high level and making many constructive comments and I am pleased to be part of that process.
When the history books are written they will show this Government was warned in 1997 by a bank of England report to bring in legislation to control banks for the protection of society and business. Our Government binned that report and affectively deregulated, unleashing greed on an unimaginable scale – the rest is history!
The country needs real, effective solutions to what is a very very real crisis, solutions that really do reach down to small and medium sized businesses to revive the entrepreneurial backbone of the country and restore confidence and encourage long term planning and investment.
A LEGISLATIVE AND FINANCIAL SYSTEM WITH THE CORRECT BALANCE.
What I call Community Economics.
In letters to the current and previous Chancellor, I requested clear strategies for SME’s to ensure future business stability- as a matter of priority, to include:
1. A real reduction in the legislative and tax burden on small businesses including the introduction of policies, incentives and allowances that build long-term business confidence and encourage long term investment including pensions stability.
2. Policies that would assist and encourage the development and succession of family businesses.
3. Strategies in the planning system that ensures a balance of scale in communities between large supermarkets and small shops, that includes a fair balance of green policies between business, private individuals and the community.
My Letter to Alistair Darling was ignored, not surprisingly. Then followed a Budget that put a further £2-3 billion tax burden on SME’s The recent VAT reduction of 2.5%, I am advised, will cost the country £12 billion and is considered by many to have been a complete waste.
The new Jobs Plan announced recently will not help those already struggling to pay the current wage bill, but may help bigger businesses. Many small businesses are also afraid of getting more embroiled in regulation with more staff and are looking to cut staff levels.
The Loans Guarantee scheme is not going to be of much real benefit to SME’s in trouble; it will not take on risks, and where are the banks when you really need them ? - watch out for the small print.
The current very real problems are about.
1. Cash flow and risk management, including getting loans at good rates if at all.
2. Cutting operating costs where possible, for businesses and within business.
3. Affordable Marketing and Strategy advice for SME’s to get new business.
Restoring confidence is going to take some time!
Chris Slocock, Past President Dorset Business, Vice Chairman SWCC, BCC Business Representative SW.
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