It looks as if the banks are not really paying out the loans, we know stable busineses who have been offerred loans at 15% to 30% interest, so again the banks are cashing in or don’t want to help. With an 80% Guarantee from the Government, and Bank borrowings at 0.25% this is clearly, not an attempt to help. It is I fear a watershed moment for the Banks. We needed help – We got Rockinghorse **** – Rare and Expensive
What we need is Cash in the economy NOW.
Here is a letter we have put together with Ambassadors and Chamber Members, to try to get the ball rolling.
How is your conversation with the Chancellor going re actually supporting small business owners? Or the 60% of UK taxpayers that they employ?
I want to highlight the reality of the situation they are in:
- Those Business Owners and their employees elected you time and time again.
- Those Business Owners and their employees will be the first to innovate and drag us out of the recession which will inevitably follow the COVID “recovery”.
- Those Business Owners and their employees have their houses on the line today and no useful help from Government.
- If the Government does not get cash directly into those people’s bank accounts. Those people will become Boris’ Bankrupt Businesses…. By June 1,000,000 small businesses will close (see below) And:
- Those Business Owners and their employees will never forgive you if you help everyone apart from them.
As the dust settles, they will look for someone to blame. Unfortunately the Government is in the firing line, because the civil servants are camouflaged.
This could be the end of the “Party of Business” the Conservative Party.
Let me move to a solution.
It’s simple. It’s radical. It will be cheaper than the bank bailout of 2007/8. It could replace most of the current ineffectual attempts at “support”.
… and it is deliverable this month.
It’s a short term universal basic income of, say, £1,000 per month per taxpayer.
Paid through the National Insurance or the Statutory Sick Pay mechanism. Avoiding the banks who are busy destroying your reputation again.
Boris can and must mandate this now. He can do the right thing and be “The Saviour of Britain’s Business” rather than the creator of Boris Bankrupt Businesses
Boris must hear this advice now and from friends, at the moment the press are supporting him, but they are turning, and will slaughter you if you dont act now.
Here are some supporting bits of evidence.
- In the UK for example: Source Blonde Money
- A London lockdown costs £0.5bn per day (CEBR estimate)
- 7% of UK small businesses have already closed and 12% plan to do so in the next month (Be The Business and Opinium survey)
- 800,000-1million of them might have to close in the next four weeks (Corporate Finance Network survey)
- Benefits for the self-employed won’t arrive until June
- Small businesses typically hold only a small cash buffer, as this chart from a JPM 2016 report shows .
- And households don’t have much cash in hand either
- Even the fiscal stimulus can’t fully offset this, as the latest US GDP estimate from Goldman Sachs demonstrates
- The acute need for cash was echoed at a webinar hosted by Policy Exchange today with some of the key policymakers in the last financial crisis: Mervyn King, Alistair Darling and Nick Macpherson. They were all adamant that it isn’t enough to announce relief for business, it must be implemented. Otherwise, as former Chancellor Darling put it, “we will pay a much heavier price”. (See below for our notes of the event.)
Grant this is important. Now is the time for Leadership, not listening to academic experts who all disagree with each other. Just Tell the Revenue to implement this. They have the NI numbers of everyone who ever paid tax, in whatever form. Set Up a web portal, where people put in their NI Number, Address and their Bank Details. Revenue can confirm they are tax payers, and send them money. If they need help doing it, let me know, we have handled these volumes of data in the past from Ad campaigns. Fraudsters dont pay Tax. So it will save your paying out millions to Fraudsters through Universal Credit. Do this and people will see common sense (A Rockinghorse Commodity) and compassion in Government. They will remember it.
Welwyn Hatfield Chamber of Commerce