Enterprise Britain…now VERY RIP

However we felt a week ago, as the Labour Government came to its agonising end, has been smashed into little pieces, as our Coalition Government beds in.

The irony is that we have a Prime Minister who failed to win an overall majority (because voters did not really understand Tory principles and policies) and a Deputy Prime Minister who managed to lose five seats in an General Election where the Liberal-Democrats should have knocked Labour into smithereens.

For Enterprise Britain the agony continues. Vince Cable is so hell bent on bashing any banker he can find that the chances of any financial conglomerate supporting smaller businesses are nil. Repeat: NIL.

George is also on a mission. Increase revenues and cut costs. If he had been more honest and detailed during the election campaign there could have been a Conservative majority.

The reality is that Westminster is on alert. The new Secretary for Wales Cheryl Gillan is travelling to Wales second class and so are her staff.

Nobody argues cost cutting but Enterprise Britain needs stimulating. That requires Government expenditure. Not a chance. All Cameron brownie points will go to those who reduce costs.

Capital Gains Tax (“CGT”)

About 200,000 people pay CGT and the current forecast is that it will raise £1bn in the coming year. It is going up.

Hands up anyone who recalls hearing about this in the election debates?

It is also wildly misguided. It will decimate short-term trading on the stock markets (unless you do it through your personal person). Short-term trading aids liquidity which encourages investors in smaller shares – well done George.

Those publicity seekers the Dragons have caught on to this. Theo Paphitis and Deborah Meaden lost no opportunity to get newspaper coverage with their protests. Theo wants a CGT rate of 10%. However he suggest share ‘spivs’ should pay 50%!

We must wait for the detail and hope that the representations, which I suspect are being made, will allow common-sense to prevail.

Last week I suggested that Enterprise Britain was ‘RIP’.

A week later I am certain it is.

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