Yes, the much awaited non-event was presented last week by Alistair Darling who provided news we all have been prepared for, of a tough time ahead for the British consumer / electorate for the next few years with the UK’s deficit problem. He tinkered with tax and confirmed much of what was in last year’s Pre-Budget Report, but in essence could do nothing to instill confidence for either the private individual or business, despite the emphasis on doing more for the SME sector. Cameron and Clegg of course responded in the usual manner but for all the main parties, electoral politics aside, the problems that the UK faces for the next five years will involve significant cuts in public expenditure and tax rises, (direct, indirect or by stealth).
Monthly Archives: March 2010
It is a second year of low or no growth in the UK economy with many businesses continuing to struggle. Looking at the small and medium sized enterprise, (SME), sector, low interest rates have enabled companies to survive the downturn and where funding requests have been made, it has been to support working capital requirements and not for growth or expansion initiatives.
Businesses appear to be waiting for something to happen but it is individual company’s that can be the catalyst for stimulating the economy. Few are really carrying out an annual MOT – (Management’s review of Opportunities and growth Tactics), evaluating their strategy and where they want the company to be in a year or two years time.
MW Interim Finance can facilitate these business reviews and assess operational efficiency across their business function’s, provide strategic options and facilitate their implementation to drive growth benefits.
The Bank of England kept interest rates at a record low of 0.5% for the 12th consecutive month on Thursday, a decision widely expected as any rise in the cost of borrowing could damage the UK’s fragile economic recovery. The bank has not pumped any more money into the economy under its quantitative easing (QE) but may have to restart its asset-buying programme, (QE), if the economic outlook deteriorates, but many analysts are predicting monetary tightening later this year. It appears that the “tensions that underlay the build-up of large world imbalances have not been resolved” and the UK’s largest export market, the euro zone economy, has stalled.
Despite the upward revision to GDP in the fourth quarter of last year, to 0.3% from an estimate of 0.1%, the economy remains weak. Businesses are still under serious pressure and the threat of a double-dip recession is more serious in the near future than risks of higher inflation.
The pound took a pounding last week and suffered its biggest one-day fall for more than a year amid the prospect of a hung Parliament, after the election mooted to be in early May this year. There are fears that this will prevent swift and decisive action being taken over Britain’s public finances. Sterling fell to under $1.50 for the first time in ten months and today closed at $1.51. Against the Euro it is only €1.11 and has remained at this level for some time, despite debt issues in Greece and Portugal putting pressure on the Euro.
Link2Business has now added MW Interim Finance to the online directory service provided by the British Chambers of Commerce and Ten Alps. The site is a B2B online business and market intelligence resource for SME businesses, the public sector, global trade, energy & environment and infrastructure. MW Interim Finance can be found via the following address , www.Link2Portal.com/business, within the SME option and entering Interim Financial Management within the category search.
Alternatively visit the website www.mwinterimfinance.co.uk for more information on how a professional interim finance director resource can bring benefits to your business.