It’s been an interesting week; the fall out of the credit crunch rolls on, house prices continue to fall, various wars continue to take their toll around the world and what do the BBC, Gordon Brown and David Cameron choose to lead on? The rude and boorish activities of two overpaid radio presenters.
Oh well at least the Chamber has been doing it’s bit, meeting Members of Parliament, challenging the government on the payment of rates on empty business premises; calling for cuts in interest rates; and particularly looking at support for smaller businesses during the current economic upheaval.
Smaller businesses play a key role in the county employing high numbers of people , introducing innovative new ideas and as a vital link in the supply chain for their larger brethren. To many of the people running smaller businesses the word challenging no where near reflects the current situation.
Anyone who has put their house up as security to support a business will know the stresses on themselves, their families and life in general. People running small businesses can’t just lock up at night, go home and forget all about it.
Last Sunday I read the papers as usual and found myself becoming more and more angry as I read the various accounts of why we had got into the economic pickle in which we find ourselves. Angry because many of these so-called experts were the very people who had caused the problem. I don’t suppose many of them had put their house on the line.
Now the banks who largely caused the problem, those that courted the small companies whose businesses they so avariciously sought only a few months ago, are withdrawing their support. Not surprising I suppose when they don’t even have the confidence to do business with each other.
It is clearly naïve to expect things to return to normal overnight but surely the key ingredient we require now is confidence. Isn’t it about time the experts in the City and the banking community began to do something about it?
Oh, and what about Messrs Brown and Cameron? It’s probably better that they stick to worrying about the BBC.
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Congratulations Herts Chamber on firstly lobbying on our behalf and also giving us a forum to share and exchange views.
ReplyDeletePerhaps collectively we can create some practical solutions to our curent quandries by sharing and debating ideas here?
In the UK SME's (a business that employs < 250 employees) account for 99.8% of all enterprises and more than 50% of all turnover. (Source BERR Enterprise Directorate Analytical Unit).
Who is left to sort this mess out? They have all(Regulators, Government, Financial Institutions, Bank of England) failed us collectively and it us who will now have to pay for it.
The high street banks are changing their lending policies weekly. Their hands are tied by the rapid bailout deal offered by government; which I have no doubt were essential to stop the banks failing; but now they are left with the millstone of 12% preference shares to repay - they are still constrained - which can only exacerbate a downturn.
We need a liquid and vibrant banking sector to ensure the wheels of industry keep turning. So now, where are we going to get the funding for our business?
The Bank of England are only tasked with controlling inflation.
Public sector borrowing is at record levels already. The family silver (gold reserves and natural resources have already been sold off).
The regulators have continually failed in keeping checks on the market and major institutions.
Government have applauded the City for their contribution to the economy.
We need forward thinking policies and legislation to maintain our economy. Forward thinking well beyond the next 5 years.
Consideration needs to be given to us the middle market where perhaps because we are driven by other factors over gread and power our collective psyche can provide some practical answers. Answers that will develop our economy with sustainable growth well into the 22Century?
Who else is there left to step into the breach and provide solutions?
I look forward to the development of ideas on this spot.
The only thing Tim didn't say was that it was the greed of the banks that got us in this mess. Already they are trying to engineer a return to their bonus rich days. Look at Barclays and the middle eastern money it has taken. Now Lloyds and the others are trying to do the same; so what is to say that this will not happen all over again particularly when the banks know the tax payers cash will be used to bail them out.
ReplyDeleteThe greed of the banks certainly did get us in this mess but no one stopped them!
ReplyDeleteGovernment didn't want to stop them because recession was looming 2 and 5 years ago and the continued lending helped spend our way out of a downturn and past an election!
Slippery Tony did it again.
When we were already drunk on excessive borrowing we drank more! Now we are paying the price of falling over in the gutter out of control and just waking up to the stinking hangover that follows (and is unlikley to go away for 18 months to 2 years).
Solution?
Give the Bank of England a mandate to steer the economy as well as control inflation. At least then there will be a psuedo independent body looking after the interests of the whole.
Power to the people! Decentralise.....