More than 600,OOO UK companies in financial distress. Labour's answer? More financial burden.

 

In recent years, the level of taxation imposed by Labour authorities increased exponentially. 

Congestion charge? ULEZ? Parking permits? Announced increased of capital gains and national insurance payments? 

Not enough with having to contend with rising costs of utilities - to name one range of expenses for any business to deal with - more regulation on the horizon.

After COVID,  the energy crisis, and after the energy crisis a Labour government that is bent on creating new obstacles along the way.

When we talk about more than 600,000 businesses in trouble, we are surely talking not mainly about big operators, but about medium size and small businesses, many of which might certainly be family businesses.

The amount of money people spend shopping has dropped and this means less revenues for companies, whatever their size. If you add regulation and taxation, there is going to be less monies to invest in the normal economic cycle. If by cutting down the flow of money in the normal economic cycle, unemployment and subemployment rise then the Welfare State will be affected. The annnounced intention to cut down welfare payments by 3 billion Pound is pie in the sky. It is for the birds. Lack of economic activity due to people having less money in their pockets will lead to unemployment. The natural consequence is that several things will grow: domestic violence, street crime, deprivation, and illness.

Taxing people and companies to the hilt will not produce economic growth. 

Britain: long before the first official budget is published, announcements are not encouraging

As part of point scoring, two digit salary increases are announced for public workers and Union workers while, at the same time, measures to support pensioners are discontinued and new increases of utility bills are announced.

Presumably, in october, we are going to be told about a tax shower. So get your spreadsheets ready because it is going to take some time to calculate how much ordinary britons are gong to be hit with a barrage of taxes and utility bills that sooner than later are going to be reflected on the cost of basic items of the family basket. Nominal values might be going up but real values are going to make you poorer.

We are really and truly talking about a new period of austerity, but this time under a Labour government. The Labour Party played a new version of 'read my lips, no more taxes' and the gullible fell for it. People are going to be taxed to the hilt and beyond. Let's look at rental prices. They were already beyond reach for a growing number of peoples.

If you are going to have even less disposable income, things can only be worse and one of the most worrying bits for any economy is a massive reduction of consumption. Using Covid as an example, if people - deterred by rising taxes and rising utility bills - start consuming less and less then already struggling businesses will go out of business pushing upwards unemployment numbers.

In any case, get your spreadsheets ready. 

Official inflation rate = 10.1% Utilities and communication providers raise prices by 14.4% Justified?

This is the Wild West. Certain operators are treating their customers as hostages. There is no justification whatsoever for such increases and in the end such abuses are going to create an unscapable inflation upwards spiral. But there is worse. Some shops have increased their prices fourfold. What used to cost £1 is now offered at £4. This is unsustainable and sooner than later abusers are going to cause their own demise with 'closing down' signs. This sort of public hysteria is extremely dangerous and the authorities have no answer for it.

People being thrown onto the streets because they cannot afford rental accommodation price rises of 20 per cent? How on earth is this being allowed to happen? Because this is becoming widespread you realize that we don't really have a government. This is a national emergency. There is no point in strikes and negotiations if landlords are going to abuse the system to the point that whatever is agreed during salary negotiations is automatically cancelled, superseded, by disreputable landlords. Will the authorities step in or will they sit on their hands and allow abusers to destroy the entire economy?