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Posts Tagged ‘Economy’

What could a Labour victory mean for the UK economy?

What could a Labour victory mean for the UK economy?

While Labour missed out on a majority vote in the last General Election, there is still conversation circulating about what a victory for the party would have meant for the UK economy. Read on to find out what a win for left-wing voters could have lead to…

The tax system

Labour’s manifesto was quite heavily focused on tax and a victory for the party would have meant that what they consider to be a fairer tax system would be implemented. As a result, there would have been no increase in tax for anyone earning less than £80,000 a year while the top 5% of earners would have been asked to contribute more money to help fund public services. Corporation tax would also have increased from 19 to 26 percent.

More investment in the UK infrastructure

The Labour Party believes that UK citizens have been held back due to a lack of investment in the UK’s infrastructure and had plans to address this problem by pumping a staggering £250 billion into upgrading the economy over 10 years in the form of a National Transformation Fund. This money would have been put towards completing the HS2 high-speed rail from London through Birmingham to Leeds and Manchester. This would make commuting easier, which could, in turn, have a positive impact on the UK economy.

The way the financial system operates could have been transformed

Taking a nod from successful German and Nordic countries, Labour had a plan to establish a National Investment Bank that would introduce private capital finance and deliver £250 billion of lending power. The National Investment Bank would have filled gaps in lending by private banks, particularly to small businesses and by providing long-term R&D investments.

More people would have a say in the economy

While Britain is a long-established democracy, it’s hard to deny that often, financial decisions that involve our economy are made by a small minority of people. If Labour had achieved a victory in last General Election, the distribution of ownership of our economy would have shifted. The size of the co-operative sector would have been doubled, and a ‘right to own’ scheme would have been introduced that would have meant employees would be the buyer of first refusal when the company they work for went up for sale.

The Recession, ten years on: how are we affected?

The recession, ten years on: how are we affected?

The recession, ten years on: how are we affected?

The recession began as just another financial crisis on Wall Street. There was an issue with subprime mortgages in America—mortgages given to people who looked to be high-risk lenders, with difficulty maintaining a repayment schedule—which became a bigger and bigger issue as more and more people defaulted on their mortgage. Wall Street had accepted this higher risk, but it was unsustainable. Lehman Brothers, the investment bank, collapsed because of these problems, problems which continued across the globe.

The UK bank, Northern Rock, was caught in the crossfire due to their practice of heavily using the international money markets. When this became known, customers of the bank flocked to take out their savings. Known as a bank run, this essentially drained Northern Rock of its assets and turned it from a healthy company in the morning to one that was facing bankruptcy by the day’s end.

Across the world, countries fell prey to the credit crunch, now recognised as one of the worst recessions since the Great Depression of the 1930s. many were affected, Companies were reluctant to employ new staff, employees were reluctant to accept redundancy, wages stayed stagnant, and the cost of living shot up.

It’s not been an easy road to recovery. The UK government’s insistence on austerity has recently become an unpopular one, quality of living for many have dropped and more and more families becoming reliant on food banks. Mid way through recovery the UK voted to leave the European Union, a move which to date has yet to see benefits, a decision which could throw finances into disarray when the UK officially leaves.

Lord Aidar Turner, who was head of the UK Financial Services Authority between 2008 – 2013, worries that not enough has changed. Speaking to the Sydney Morning Herald, he warned that the world has not learned from the problems that lead to its problems the first time. Problems like debt overhang, where people and countries are so in debt they can’t borrow any more, are still rife. So much do, the Banks are having to sell on their non-performing loan portfolios in order to recover some if the debt owed.

Recently, AIB is reported to be set to push the button on what they are calling Project Pine. Project Pine is a €300million sale of non-performing loans secured on assets in Britain and Northern Ireland.

To read more on this recent AIB loan sale follow: https://www.businesspost.ie/business/aib-offload-e300-million-non-performing-loans-397495

Or Read our blog on a previous AIB loan sale and how we can help: https://bellcomp.co.uk/2017/02/10/aib-loan-sale/

Since the downfall of the markets, in real terms, levels of unemployment have gradually decreased in the ten years since the financial crisis began. Wages have slowly risen, though so has the cost of living which means there is still a gap. House prices have risen, but not to the levels seen pre 2007 and though a lower amount of new houses are coming onto the market people are still wary of taking on a new mortgage and expose themselves to more the risk.

Overall, Debt is still an issue. Even though short-term lenders like Wonga and QuickQuid have been handed new sanctions, debt shows no signs of slowing down. Something which needs to be addressed.

If you are finding yourself in a difficult position due to unaffordable mortgage repayments, the possibility of repossession or fear your mortgage has been sold to a Vulture fund then speak to us today.

We are experts in working with those who are in financial difficulty due to property Debt related issues. Covering Ireland UK and several countries in Europe, our experts have a wealth of knowledge and can negotiate on your behalf to find solutions suited to your situation.

 

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BUSINESS CONSULTANCY – WE DO THAT TOO!

As Bell & Company has grown, we have continually looked to add different skills and services which can benefit our clients. Towards the end of 2015, we were asked more and more business-specific queries from clients and how we could assist in improving their business. Accordingly, we are looking to develop a consultancy side of our business.

Our staff have a range of backgrounds:

Whilst it’s all well and good having some letters after your name. There is no substitute for experience, sometimes the theory learned cannot be put into action.

Having developed Bell & Company with just myself and my son James working in a small 2-person office suite to a firm employing 19 Full-Time staff I understand the pressures and rewards when developing business.  I hope to pass on my experiences to other business owners to allow to benefit from my successes and also to learn from my mistakes.

Not only do we have a fantastic variety of personnel to call upon but thanks to our business developing, we have an excellent network of peers who could also benefit your business.

Bell & Company firmly believe that there are some tremendous business owners and businesses in Northern Ireland and by bringing them together we can stimulate business, trade and ultimately the wider Northern Irish economy, which will benefit all.

If you want to discuss anything regarding your business please contact us today, it doesn’t just have to revolve around debt and even if we are not equipped to assist, it is more than likely we will know someone who will.

As ever though, Bell & Company continue to specialise in Corporate Debt Negotiation, Personal Insolvency, Negative Equity Assistance and should you or anyone you know require a free initial consultation to determine your position and options please call the office today on 0330 159 5820.

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