Full Sail Ahead for UK PLC Whilst European Debt Storm Rages. My View on George Osborne's Autumn Statement

I was interviewed on BBC Radio 4 World at One by Martha Kearney following George Osbourne's Autumn Statement. Here's my overview, summary as relates to UK SME businesses & startups: Firstly, being a sailing chap I'll use the analogy that the UK is a sailing ship in the middle of a European debt storm. To avoid being sunk by it, should it A) batten down the hatches and ride it out, B) Hoist a spinnaker, fill it with more debt and attempt to outrun it or C) maintain full sail, increase the crew on watch & keep going? In my opinion, George Osbourne has chosen option C) and this is what I would do.  Reasons being: - UK must reduce structural deficit & not increase it's borrowings by hoisting a spinnaker. It may well capsize, and be punished by external factors, markets deeming it riskier, increasing interest rates & costing it dear - and all who are in it. Osborne is sticking to his strategy and not tacking into the storm. Correct, IMHO - By maintaining it's credit rating (seaworthiness) it can secure £40bn at good rates to improve finance-ability for SME's at lower interest rates. Good. £40bn is a punchy number and as long as our (majority state owned banks) do what they should, this is good. - A £30bn capital injection into infrastructure & capex out of day to day savings - again good - benefits will be enjoyed in UK & UK companies well placed to benefit. - I was delighted he confirmed he is examining an SME "Bond Issuance" scheme. At King of Shaves we pioneered this with our Shaving Bond in June 2009, this "direct to company" government backed bond can be done - it has backing of Xavier Rolet, CEO of the London Stock Exchange which has a retail bond infrastructure/marketplace in place, and has the backing of industry think tank NESTA & others. Bonding business closer with government makes sense, checks and balances can be put in place and this "bypass banks" strategy will resonate with entrepreneurs & the public alike.  Use our boilerplate/example & make it happen. - 50% tax relief on start-up business investment punt £100,000 has to be good - I founded King of Shaves - now a multimillion pound global challenger brand with 90% product made in UK with just £30,000 in 1993. - improving and widening R&D tax relief including to above the line projects is also great news - we make use of this at King of Shaves - extending the business rate holiday, also great.  As well as funding of regional growth funding. - finally, simplifying hire & fire regulation for SME's critical - we've had our fair share of "employee disputes" over the years - in some cases although major staff failings were clear, settling was costly & drawn out. There are no seats for employee "passengers" in SME's and any improvement here is welcome In summary, according to Osborne & the OBR - the UK is not going to gloom itself into a 2012 recession, so let's amplify that sentiment and not talk ourselves into one. I'm an entrepreneur, a glass half full sort of chap - but here I do believe my optimism is well placed as we rebalance, revitalise & reinvest in the good ship UK plc. Full sail ahead, no spinnaker hoist! Will King Founder, CEO The King of Shaves Company Ltd.

Comments

[Cooke Crumbles]

Very detailed blog post Great to read http://www.casinoenligne555.net/