Last week I was in raptures about Dave, George and the budget.
Politically I predicted the collapse of the Coalition and I would like to thank Mr. S. Hughes of Westminster for his support during the last seven days.
In response to Harry of Croydon, whose kindest word about me in his email was ‘bonkers’, I would suggest he considers three facts;
- During the last week the pound hit its highest value against the euro since the start of the global crisis and
- Ten-year government bond yields fell to 3.4%, almost 1% below pre-election levels and
- VAT will contribute 11.6% of government income in 2010-11. The public will pay it. It underpins the recovery by ensuring control of the UK debt situation.
So we can afford to service our levels of borrowing (the deficit is 11.5% of GDP and falling) as we watch the Budget measures take effect.
There is one other key point to bear in mind. Cost cutting began a long time ago (as early as 2008 for some): just ask the NHS managers. They have been reducing overheads like mad: they just don’t talk about it.
This augers well for Enterprise Britain. The recovery is well underway and will start to show in the first or second quarter of 2011. The Coalition will implode courtesy of V. Cable and his pals. Dave will win an overall majority and Britain will surge.
Enterprise Britain is alive…yeah!
Enterprise UK was set up in 2004 by the Federation of Small Businesses, the CBI, the Institute of Directors and the British Chambers of Commerce.
It is chaired by Peter Jones (say no more), has 50 staff in London and five regional offices. It is restructuring. It cost £4.9m during the year to April 2010. 80% was provided by the Department for Business, Innovation and Skills1 and 20% from corporate donations.
The new CEO Tom Bewick wants to see an end to government funding within three years. Featured in this weekend’s ‘The Sunday Times’ the article states “Bewick acknowledges that few people over the age of 18 have heard of Enterprise UK2…”
To replace Government funding Bewick says “It is about getting the business community more galvanised.”
Enterprise UK is an educational body and believes it deserves to survive. George has not got £4.9m left in the kitty.
Dirk, can you send Tom a cheque please. £4.9m will be fine.
1 – Enterprise Britain is proud to say it has never taken any public funding and would be embarassed to do so.
2 – We suspect few people of any age have heard of Enterprise UK