The dangers of focusing on the financial sector
The proposed rise in the uniform business rate, which is set to hit the UK retail sector, is the latest in a long line of unhelpful moves by the UK government at a time when the UK banking sector is receiving billions upon billions of pounds of state assistance. There is a growing feeling that too much focus is being placed upon the banking sector to the detriment of every other sector in the UK, something which may well come back to haunt the Labour government in the 2010 general election.
There are seriously worries that a significant number of retailers could go under over the next 12 months with planned tax increases for the sector set to cost a staggering £1.4 billion a year. This comes at a time when even the major retailers in the UK are struggling to make ends meet and the smaller independent chains are being forced to cut staff to fend off possible financial oblivion. If the UK government is unwilling or unable to assist the UK retail sector what chance do businesses have of procuring more funding from the UK banking sector?
While the UK banking sector continues to enjoy significant taxpayer funded aid it seems that many other areas of the UK economy are in serious danger.
Share this..
Related stories
First Direct launches new mortgage Tracker
First Direct has launched one of the most competitive lifetime mortgage Trackers seen in the UK with an initial charge of 2.58%, i.e. 2.08% above base rate. While the setup fee for this particular mortgage arrangement is £999 and requires a 35% deposit there are very few restraints along the way. There are no early repayment charges, which will allow customers to leave the arrangement if rates ri...
Read MoreIs the UK banking sector over the worst?
Over the weekend there has been yet more speculation regarding potential fundraisings in the UK banking sector with Royal Bank of Scotland the latest target with talk of a £4 billion rights issue. Just when it looked as though the UK banking sector was over the worst many are now concerned that fund-raising exercises are being lined up by a number of banks looking to take advantage of the recent...
Read MoreKraft Foods US shareholders launch lawsuit
A lawsuit has been launched in America by a corporate shareholder in Kraft Foods suggesting that the Cadbury board of directors have not acted in the best interest of Cadbury shareholders and "may lose out massively" if the merger is rejected outright. So where does this leave the Cadbury board of directors?
The first thing to say is that UK mergers and acquisitions are regulated by...
Double-dip Recession is Longest since World War 2
Britain is continuing to suffer the longest period of recession experienced since World War 2, figures released this week are expected to reveal. It is thought that a third quarter of decline will be published by government officials, making the economic downturn longer lasting than the second wave of recession Britain experienced throughout the 1970’s. There are various factors that are...
Read MoreUK exchange rate moves to five-month low
The Bank of England has today issued a rather negative report on the UK economy which would suggest that the current exchange rate, especially the pound to the euro and the dollar, is unsustainable in the short term. As a consequence, the UK currency has fallen to a five-month low against both of these leading currencies and there is an expectation of further downside in the short to medium term....
Read More