Cable’s accounts cut doesn’t add up
The Business Secretary announced on March 3 that small companies would no longer have to produce independently-audited accounts, a measure he believes would save £40m a year for 42,000 businesses. I have always respected Vince Cable and do not doubt his commitment to helping small business, but this demonstrates naivety that verges on madness.
I agree with his statement: “The burden of regulation... takes up time and stops business growing, and that means our economy does not grow”. That is why the Institute of Credit Management supports the reduction of red tape.
Far from helping small businesses, this move is more likely to damage a company’s access to credit, therefore restricting growth and in fact adding to their costs.
The Government needs to get away from this idea that reducing red tape will always mean reducing costs to small companies. Businesses extend credit to one another based on the trust that comes from knowing a company is financially viable, and one of the essential proof points is audited accounts. Banks also look to lend on the basis of sound financial data, so limiting the amount of information available will do more harm than good.
If the Government wants small businesses to drive the economy, this is not the way to go about it.
Philip King chief executive, Institute of Credit Management, Leicestershire
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Pleasure domes inflict long-term pain
I was struggling to recall where I had previously heard the description of going to the cinema, having a coffee, walking past a hotel and even going bowling or to a casino without entering a shop. Then I remembered: we used to call them town centres (Forget your shopping bag, supermalls are for fun, March 6).
Despite the article’s breathless depiction of our new leisure-time “meccas”, these malls are not novel. They are just replicas of a concept that has served us well for hundreds of years, but with free parking and anonymous architecture.
I live near Cardiff, which has numerous arcades of superb shops. Disappointingly, the new St David’s 2 could be any shopping centre in any town.
Anyone who chooses to use these shopping centres — when did they become malls? — should remember every time they visit one, they are contributing to the decline of something whose loss they will later lament.
That will lead to demands that something must be done and will provide regeneration and money-making opportunities in 30 years, when we realise what we have done to the traditional town centre.
Nick Winstone-Cooper Laleston, Bridgend, South Wales
Airport tax could ground growth
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Your article last week, failed to refer to one fundamental point when considering what has caused the city’s resurgence — the rebirth of Liverpool John Lennon airport (Born-again Liverpool dances to a new beat, March 6).
It was vital in stimulating the economy through the provision of international connections. It also stimulated a resurgence in tourism .
Liverpool JLA proved that when there is a level playing field with Europe, the UK aviation industry can compete as well as any other market. The problem now is the UK tourism tax (air passenger duty) on tourist and business travellers.
The industry is nervous about the forthcoming budget. We have had assurances from Government that there will be a full cost/benefit review of the tax before it is changed. Our message is clear: please do not worsen the situation. Instead, engage with industry and economists urgently to assess the damage being done to our competitive position and to regional economies in particular. We might then start to win back international air links and connections into Liverpool and other regions.
Neil Pakey, Vancouver Airport Services, Liverpool John Lennon airport
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