We need to follow Germany’s example
While, overall, the budget was well balanced with some good incentives for business, including the decrease in corporation tax and the entrepreneurs’ relief on capital gains tax, it wasn’t bold enough. Some small firms will no doubt benefit from the increased £200m investment in the Enterprise Finance Guarantee, but why does the scheme come to an end next March?
To truly enable small business growth, the scheme needs to be in place for at least three years, particularly as it has been criticised for being too slow to deliver credit and having too much red tape. Banks need to start lending again to SMEs and it was bitterly disappointing that no measures were outlined in the budget to guarantee this. Equally, there was not enough focus on incentives to boost the UK’s flailing manufacturing industry. Since 1997, GDP in manufacturing output has halved from 25% to 13%. Since 2008, the proportion of GDP in the public sector has grown from 39% to 45%, and it shouldn’t be more than 33%.
The government needs to rectify this imbalance aggressively with a framework for business investment and growth that is sustainable. If this does not happen, the cut in public sector costs will not be matched by private sector growth. We need to move closer to the German economic model, with the government setting out an ambitious mission to achieve this.
These fundamental issues deserved greater attention in the budget. This was a budget — but we need a privately-led recovery plan too. Without this, GDP will go into reverse.
Stephen Archer, Spring Partnerships, Banbury, Oxfordshire
Privatise BBC to boost public funds
The chancellor wants suggestions on ways to balance the government’s books, through revenue raising or public service cuts. One way to raise several billion pounds would be to privatisatise the BBC, which unlike vital utility services that have been privatised, such as the water and electricity boards and the railways, is in no way a “unique service provider” these days. Let the BBC operate under market conditions commercially with the likes of ITV and Sky.
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The television licence fee is an outdated, archaic racket and an unfair way of funding what is, in the main, an entertainment service. In a modern society it makes as much sense as having to buy a licence to use a washing machine at home or alternatively use the corner laundrette. Let those who wish to view BBC programmes pay a subscription for the service in line with the many commercial broadcasters.
Gerald Gannaway, Knowle Park, Bristol
How to solve empty shops problem
I write regarding your article about the so-called bombsite tax, (“Cable’s tax test”, Inside the City, last week). Keeping rents low is the sure way for more shops to find tenants. Many landlords hold out for rents similar to those achieved during the boom times. Penalising them for hanging on to empty shops would provide an incentive for them to take rents offered by prospective tenants and not hold out for higher amounts. This would help to stop rents rising for shops nearby when rent reviews are due, thereby saving already stretched tenants from closing.
P Shah, Edgware, Middlesex
Hydrogen on tap
You state that Mike Strizki’s car uses tap water, which the engine splits into hydrogen and oxygen (Energy and Environment, last week). Mr Strizki generates and stores hydrogen using photovoltaic cells on his garage roof. Hydrogen transferred to the tank in his car is used to generate electricity to power the car using a fuel cell. Just about the opposite of the way you have described it.
John Hadley, St Albans, Hertfordshire
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