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Finance


The way things are going at the moment, there won’t be any politicians left to run the country with the main parties having to expend all their energies fighting off accusations of wrongdoing either of a sexual nature or getting up to no good by doing their own thing by not behaving themselves in a political way and following accepted procedures as becomes a government minister (secretary of states). Then we have the paradise papers leaks were no one seems above making a few bob by avoiding tax. I have noticed (so far) that HMRC have kept it’s head down (so far) as a few years they flogged a lot of their government buildings to off-shore investment companies in an effort to save money. Those very off-shore companies they are currently chasing in an effort to obtain tax revenues currently being avoided. You can’t make it up, can you?

I’ll have to put a lot of thought into another subject where there must be a better way to run a country than the current group seems to be doing. I know, how about introducing a similar law as Ireland recently did to catch some of ‘googles’ avoided millions in avoided tax on their profits. Mind you, it would need to be somewhat more tightly drafted as they simply moved to another tax efficient country (Jersey) who won the ‘bid’ for processing their profits.

One place to start would be to ensure the major auditors either do their job properly or pay a severe penalty. Having missed the odd £million in mistaken profits at Tesco, the auditors simply washed their hands by saying they accepted what the management told them. So what exactly were they paid for?

Talking about auditors, I was reminded on money box today (BBC R4) that when the government wanted to tighten up some of the tax avoidance loop-holes, who did they call in to advise? Yep, representatives of big business and the large auditing LLPs (Limited Liability Partnerships!). They who will benefit most from any changes!! What a way to run a country??

Update 17th Nov 2017

It’s PFI all over again with the announcement that Housing Associations are no longer to be considered public bodies, but private companies. Government thinks this will go a long way to increasing the housing stock for some reason, but we all know that borrowing of public companies remains on the government book of debts. PFI was a cunning plan to get private companies to pay for (and profit from) public projects by removing the huge borrowing ‘off the books’ and we all what a great success that is for financial organisations (but not the NHS or schools). Now it’s the turn of housing. Not content with making housing associations sell to their tenants, now they have to make a profit to make the interest and capital payments to overseas bankers. Sound familiar??

Budget 2018(Nov 22nd 2017)

If I didn’t know better, this was an election budget for 2018/19, with lots of spending promises but little about it will be paid for. In fact, exactly what the conservatives say about Labour, so I can only suppose that the money will come from the money tree that is used to pay for all the improvements to the new USE members infrastructure and foreign aid and official pensions and will not be needed once we leave USE.

17 January 2018

What can anyone say? The Conservative mantra that big business always is cheaper and does things better and better managed than the public sector seems a little hollow to all the small companies caught up in the demise of Carillion. They did all the right things for the wrong reasons. Bid for contracts and get someone else to do the work. If you didn’t get the contract, buy out the company who did. Stick your name on everything and sit back and wonder why the public sector didn’t do the same, as if they can make money, the public sector must be able to do it at less cost to the taxpayer.

I was once told by a committed conservative when I queried this ideology that only the private sector could manage! If only that was true. I keep getting reminded that my idea that management in this country leaves a lot to be desired is frequently confirmed. Not not only talking about the private sector, but the public sector is just as bad. We just can’t manage these days. Strangely, there are actually a number of good managers around but finding them is the problem!

This evening, there are promises that some workers/sub-contractors should be paid from the liquidation date (last Monday) but many contractors on building sites are unable to get onto site to even get their tools or plant, so things are not looking rosy at the moment. There is naturally no mention on the £millions lost by the company or even work carried out, paid for but not passed onto those who are owed the money - this will disappear into the liquidators pot who, along with the banks and HMRC will be way above the unsecured creditors (this from someone in the been there, lost that situation in the past). Of course, without their tools, how are the construction workers supposed to move to jobs where they stand a better chance of getting paid? Now about all these homes that the government has promised?

As you see, it’s all interconnected and government seem oblivious to the situation, but they are right!!




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