I’m still not convinced we are out of recession here in the UK, its all manipulated figures and smoke and mirrors. Yesterday I read that the Eurozone is still in recession as its GDP falls by 0.2%. But it’s not just the small EU countries fuelling this, Frances economy shrunk and Germany’s is practically stagnating.

It does seem that in many countries austerity isn’t working, even here in the UK despite the press spinning figures to say differently. Cutting services here in the UK has caused people hardship rather than helping because the costs the government have cut haven’t really saved them any money.

Many people still think that collecting taxes owed is a better idea and to halt tax breaks for the rich and big business. Recently tax breaks were given to movie studios producing films here in the UK, somewhere which hasn’t been popular over a number of years. These breaks will work and once companies are established here they can be removed. Tax breaks for big corporations already established can be removed, there is no need to let large companies such as Starbucks and Amazon not pay full tax liabilities, close the loopholes, these companies aren’t going anywhere. Offer, establish, remove, simple as.

Small companies need better tax breaks as well; they can’t compete with the bigger businesses that have favourable payment options with the HMRC. They get more pressure of banks and government red tape costs them money not to mention big business suppliers not paying their invoices on time, leading to the use of invoice factoring to recoup monies owed albeit at a loss.

We have to make all business viable rather than just looking after the select few who take politicians out for dinner; otherwise we can’t make any money to get out of this mess.

As we are part of the EU you would think that news such as this: EU Carbon Price Collapse. I came across it rather by chance, like most things in the news. I’ve never been a fan of carbon trading, something I did start to deal a little bit with in my time in the City. I feel it’s wrong to trade on projected figures and certain basis of well how much we pollute the planet and how much projected damage we do.

Since 2008 the price of carbon has fallen probably in line with the banking crisis to which we can attribute many drops in trading including currency. However the interesting thing with carbon trading is that in theory you are trading on thin air, to the apparent end of reducing carbon emissions. But in essence you don’t. Those countries with high carbon emissions trade with low producing countries to reduce their carbon output. So on paper they don’t produce as much carbon, but in reality they still are it just costs them to do so. But all in all it doesn’t dramatically reduce pollution. It just makes money for speculators.

I feel the same about the whole carbon foot print bollocks, I leave quite a large footprint with the mass consumer based products which I purchase, holidays I take and activities I enjoy and the number of times I fart a day. But costs and effort of me, just me reducing my carbon foot print won’t stop the ice caps melting and the polar bears losing their icy homes. Like carbon trading it’s a money making scheme, because if your quite a big polluter then you can pay to offset your carbon. Again PAY money, and where you ask does all this money go, into reducing pollution and carbon emissions well no, speculators again and the pockets of those in charge. You can’t use money to stop carbon, unless you completely restructure the way we collect and produce energy. And that, well, it won’t change anytime soon, well not when countries won’t work together and people can make huge sums from this.

Currently the EU is unable to prop up their carbon price, hence the collapse, but this will also have an effect to us here in the UK and our carbon floor tax. Introduced at the beginning of this year, this tax will leave us uncompetitive compare to other EU countries especially as the EU Carbon Price collapses. As the EU is currently refusing to prop up the EU carbon market, this means prices in the UK will be kept higher and UK companies who produce energy will face much higher tax bills than their EU counterparts. Talk about under productivity; it’s like our government like setting us up to fail on a global scale.

Anyway, rant over, for now. I have some football to go listen to and some holiday stuff to sort out. I will update you on how the holiday went next week as I have only just got back, and well I got angry by the news I saw! And the rest………

Image courtesy of gynti_46

I hate the budget, price of beer always goes us as does petrol the two things I use a lot of, so I wasn’t that arsed about watching the Chancellor announce this year’s budget. But as I had nothing better to do, I watched it.

Anyway for me I was glad to see that there will be some good news from this year’s budget, a 1p cut in beer and the rise in fuel duty planned for the autumn has been cancelled.I didn’t see anything about fags not that that matters to me anymore, as I am purely an herbal man only using bongs and vaporizers, which I think only have VAT on them!

As I don’t work anymore, nor do I receive benefits there really isn’t anything else which affects me per say. Well other than a rise in the overall annual limit for Individual Savings Accounts which I have. The limit will rise from £11,280 to £11,520.

Luckily I do not work anymore, I would be in the higher rate income tax bracket, which will be increasing, bringing more people into that threshold, which will be frustrating for many, especially when many aren’t getting wage rises! Inheritance tax will be from £325,000 now, it was meant to be from £329,000 from April 2015, but that has been cancelled now. Good job house prices aren’t rising at the moment.

Benefits aren’t changing much, many of the frozen or subject to a 1% rise, which to me is fair, others may not agree. However when you consider wages haven’t risen, then benefits shouldn’t go up either. Pensions will also be moving onto a flat rate as well a year earlier than originally planned, £144 a week and also a cap on social care confirmed.

One thing I am not sure about is the scheme where the government will be offering interest free loans for home buyers up to 20% of the value of new build property. The loans are only interest free for five years though and payable when the house is sold. I think it also covers property that needs restoring such as Kensington in Liverpool, where people are helped to re do abandoned houses from failed Pathfinder schemes, as long as they live in the for a certain number of years.

I think the government is hoping to boot the house building industry, but I still don’t think it will work as houses are still too expensive. Plus a lot of people I know would never buy a new build because the quality is so poor. The government should be looking at reducing house prices, I am not sure how they could do that, but they shouldn’t be artificially propping it up with these loans.

One good thing I see is that they are cutting National Insurance for businesses, this is to improve job creation, I just hope companies create jobs which are fairly paid and not cream it off for profits. I think minimum wage should be increased at the same time as this, and then it gives everyone an opportunity to have a bit more in their pockets.

There is a lot more in there, but alas I am too tired to read up on any more, time for some Xbox I think.

It seems that in his wisdom, Gove has decided not to completely change kids’ futures, by bringing in the unfathomable English Baccalaureate Certificate (EBC). Instead we will be sticking with GCSEs. Good news, well yes and no. He will still be tinkering with the education system though. I can see why he dropped the EBC because there was zero support for, however I do wonder about his grand master plan for education.

The problem with education (in my opinion) in the UK is that there is no one clear plan. Different exam boards different expectations and also different exam choices. Once over core subjects such as English, Maths and Sciences were first and foremost the most important, then the likes of Geography and History and a Language before the softer creative subjects such as Art and Technologies.

Now you have subjects such as Health & Social Care, Media Studies, Travel & Tourism, IT and Business. Subjects where their main mark able work is made up of course work which means getting a higher mark easier when you have less exams to do. This to me seems pretty easy, I mean coursework can easily be copied and you can get help on it, because it can be done at home. I’m thinking though GCSE media coursework example is probably not the best example when it comes to showing the standard of education in the UK. I mean to us oldies it probably seems quite unimportant along with the rest.

That being said, taking ‘easy’ subjects isn’t always the best option, employers aren’t stupid they will be able to see that you took the soft options and despite getting high grades, you could be turned down for a job. Rather than someone who studied harder core subjects and got average grades. It shows they are willing to work hard.

I think the system needs reforming, but first we need suitable teachers to improve the standards. It no good making exams harder and pass rates higher, if the standard of teaching is the same. The kids won’t have a chance because they won’t be taught at a high enough level to get good results.

I have been advising one of my friends who is in the infancy of his own interior design business. So far he has been working with other businesses; however for some work he hasn’t been paid. Despite the fact that he has had to pay out for work to be done and equipment and products for the properties he has worked on.

Unfortunately in this day and age, some companies change the goal posts on when they pay you, however as a small business, you have less leeway on when you pay your bills. This leads to extra debt problems which my friend is struggling with at the moment. I have done some cash in hand work for him, however I am willing to wait for my pay, but some other places aren’t and when the people you did the work for are slow at paying, and it puts stress on the man in the middle.

Something I have come across online is companies who help you release cash from your invoices, they ‘buy’ the money owed off you, for an amount less than what it is worth, then they are the ones who have to chase the cash owed. This isn’t a bad option when you’re in quite a bind, as it means you have the cash when you need it. Although you don’t get the full amount, it may be better than paying your bills with credit from a bank charged at a high interest rate. It also means you don’t have to spend time chasing the money yourself.

I have been wary about things like this in the past, however when companies are being, squeezed and squeezed, sometimes this type of arrangement is the best on offer. It’s not like the Government are currently helping small businesses, banks are still charging at the higher rate and calling in loans causing many to struggle. Plus news that HMRC are coming after small businesses for tax they are dodging, legally and illegally, it makes you wonder whether anyone cares if the UK recovers.