Tonight i was talking to a resident after my surgery. It’s based in a local church. And some new flats were finished early last week. The not so funny part,thet were broken into, the funny part the thief was caught on cctv spent two hours gaining excess to steal a plasma tv. Thats not funny you say, well yes it was the tv was plastic it was the show flat…
Business Assistance: Dec 2008 update
What was the situation in October?
Back in October 2008, Nick Clegg, Vince Cable and John Thurso launched our “Business
Assistance Package”. We knew then that the impact of the credit crunch and ensuing
recession will be devastating to British businesses. We called for urgent action to keep the
wheels of the economy turning: maintaining the flow of credit, sustaining business
cashflow where possible, and halting the domino effect where problems with individual
businesses bring on wider collapse.
In October, we called for:
A substantial cut in interest rates
An immediate overhaul and beefing up of the Small Firms Loan Guarantee
Measures to ensure that the recapitalised banks abide by a new code of
conduct on business lending practices
An emergency summit between energy firms and small business
representatives to look at ways of reducing the burden of energy bills
Measures to ensure small firms are better able to access public procurement
Where are we now?
While the Government prevaricated, the economic situation facing British businesses (of
all shapes and sizes) has only worsened: insolvencies are increasing, redundancies are
being announced every week, and the Government’s assumption that the economy will
begin to emerge from recession by mid 2009 seems improbably optimistic. The problem
facing small businesses is not just the lack of credit, but also a real and prolonged lack of
demand for their goods and services.
In the meantime, the Conservatives have said very little on what new or different policies
they would bring in to help small businesses.1 They refuse to acknowledge the need for a
fiscal stimulus, they are muddled over monetary policy and they have re-hashed old tax
policies (giving tax breaks to employers who take on the long-term unemployed, for
example) which will not help to stimulate demand and will not work in the current
The Liberal Democrats are supportive of much of what the Government has announced
over recent weeks: in many cases it could not have come soon enough (see detail below).
However, we remain committed to ensuring businesses getting the assistance and not to
mention clarity that they need immediately:
1 We are unconvinced that the “National Loan Guarantee Scheme”,