Category Archives: News Archive

Let’s be “frank” with the voters and Gordon’s gaff !!

Voters are being kept in the dark by all three main political parties in failing to disclose the scale of tax rises and public sector cuts required to tackle the financial crisis, says the Institute for Fiscal Studies.  They claim that the parties have black holes of up to £52 billion in the economic plans they have published as part of the election campaign, and need to be frank with voters. Not having enough information to make an informed decision based on non-transparent party policies will not engender trust, something members of parliament lost with the expenses scandal. Votes may be cast without thought of the consequences or there may be a “why bother” attitude, dissuading people from voting altogether.

As for being caught saying things behind apparent “closed car doors”, Gordon Brown seriously damaged his election campaign by describing a staunch Labour supporter he met in Rochdale whilst out canvassing as a “bigoted woman”. The comment, made in his car after a meeting where he publicly praised her, has been broadcast across the nation and subsequently he has had to call and visit the woman in question to eat humble pie. He may convince her or maybe not but whatever the outcome of her vote next week, millions of others may have changed their allegiance today. If Cameron or Clegg had done this the outcome would probably be the same……..but a salient lesson in how to “damage the brand” instead of “managing the brand”.

Volcanic Ash Cloud……..is it just smoke and mirrors?

The best news in the last week for the political parties in the run up to the UK election has been the Icelandic ash cloud that has engulfed most of Northern Europe over the last few days. Apart from causing travel chaos to thousands of people and costing the travel and ancillary industries millions in lost revenues, there have been enormous “green savings” due to reduced carbon emissions.

The Liberal Democrats have benefited the most as the opinion polls seem to show they possibly have potentially a bigger influence in the next Government than expected by the Conservatives or Labour, following the first live UK election television debate. However, the big issues still remain and also the uncertainty of how anyone in power will tackle them, especially as many of these will not be resolved during the next five years.

Whatever the outcome of the election, hung parliament or a majority winner, addressing UK debt, public sector spending cuts, tax increases, health, education, decline of sterling, interest rates and inflation indicates a slow recovery plan over a number of years to bring prosperity back to businesses and consumers.

Bank of England, Interest Rates and UK Debt forecasts

For those with mortgages or loans last weeks decision by the Bank of England to keep the UK base rate at 0.5% is good news, but for net savers it is now a year of exceptionally low returns with inflation more than cancelling out any interest earned. Indeed, it is also lucky that UK Plc’s debt mountain is only attracting low levels of interest, as the Bank for International Settlements, (BIS), has stated “Interest payments on the UK’s public debt will double from 5% of GDP, (Gross Domestic Product), to 10% within a decade under the bank’s “baseline scenario” before spiraling upwards to 27% by 2040 – by far the highest among the OECD club of developed countries.” With the political parties currently parading their manifestos, none have managed to look beyond the next five years, (the next term of government), but the austerity measures we all will face indicate that their policies will only half the current deficit at best if all the public spending cuts, tax increases and efficiency initiatives deliver. The recession is over………………..?

UK Election fever – or is it all media hype?

At last the 6th May 2010, a date for the nation to decide on the next few years of Government. Which party, if any, will have the majority of the country’s vote and more importantly what will be the turnout level. The media have already done enough in the first few days since the announcement to put off would be voters by smothering us with their coverage and opinions on the state of each major party and the main issues as they see them.

Forget the nuances of tax and pensions for the top earners, it is the average and lower paid, unemployed, pensioners and businesses that need convincing on how politicians will deal with long term UK national debt, employment, interest rates, sterling, healthcare etc. Local authorities not delivering and high council tax levels are where the majority of the public see Government in action, (or not). Hospitals, education, re-cycling, road maintenance, (potholes and line painting), emergency services are a few of the issues to be addressed.

This is probably the most important election in decades and the media and politicians have the opportunity to engage with the nation and get everyone interested in the recovery of UK plc, but delivering change will involve some pain for all.

Oh Darling………you tinker – UK Budget March 2010

Yes, the much awaited non-event was presented last week by Alistair Darling who provided news we all have been prepared for, of a tough time ahead for the British consumer / electorate for the next few years with the UK’s deficit problem. He tinkered with tax and confirmed much of what was in last year’s Pre-Budget Report, but in essence could do nothing to instill confidence for either the private individual or business, despite the emphasis on doing more for the SME sector. Cameron and Clegg of course responded in the usual manner but for all the main parties, electoral politics aside, the problems that the UK faces for the next five years will involve significant cuts in public expenditure and tax rises, (direct, indirect or by stealth).

Small and Medium sized Enterprises, (SME’s), and business MOT’s

It is a second year of low or no growth in the UK economy with many businesses continuing to struggle. Looking at the small and medium sized enterprise, (SME), sector, low interest rates have enabled companies to survive the downturn and where funding requests have been made, it has been to support working capital requirements and not for growth or expansion initiatives.

Businesses appear to be waiting for something to happen but it is individual company’s that can be the catalyst for stimulating the economy. Few are really carrying out an annual MOT – (Management’s review of Opportunities and growth Tactics), evaluating their strategy and where they want the company to be in a year or two years time.

MW Interim Finance can facilitate these business reviews and assess operational efficiency across their business function’s, provide strategic options and facilitate their implementation to drive growth benefits.

UK Interest Rates, GDP revision and Sterling takes a “pounding”

The Bank of England kept interest rates at a record low of 0.5% for the 12th consecutive month on Thursday, a decision widely expected as any rise in the cost of borrowing could damage the UK’s fragile economic recovery. The bank has not pumped any more money into the economy under its quantitative easing (QE) but may have to restart its asset-buying programme, (QE), if the economic outlook deteriorates, but many analysts are predicting monetary tightening later this year. It appears that the “tensions that underlay the build-up of large world imbalances have not been resolved” and the UK’s largest export market, the euro zone economy, has stalled.

Despite the upward revision to GDP in the fourth quarter of last year, to 0.3% from an estimate of 0.1%, the economy remains weak. Businesses are still under serious pressure and the threat of a double-dip recession is more serious in the near future than risks of higher inflation.

The pound took a pounding last week and suffered its biggest one-day fall for more than a year amid the prospect of a hung Parliament, after the election mooted to be in early May this year. There are fears that this will prevent swift and decisive action being taken over Britain’s public finances. Sterling fell to under $1.50 for the first time in ten months and today closed at $1.51. Against the Euro it is only €1.11 and has remained at this level for some time, despite debt issues in Greece and Portugal putting pressure on the Euro.

MW Interim Finance included in the Link2Business on line directory

Link2Business has now added MW Interim Finance to the online directory service provided by the British Chambers of Commerce and Ten Alps. The site is a B2B online business and market intelligence resource for SME businesses, the public sector, global trade, energy & environment and infrastructure. MW Interim Finance can be found via the following address , www.Link2Portal.com/business, within the SME option and entering Interim Financial Management within the category search.

Alternatively visit the website www.mwinterimfinance.co.uk for more information on how a professional interim finance director resource can bring benefits to your business.

Press Release – MW Interim Finance announces the completion of its re-branding exercise and launches a new website

Press Release – MW Interim Finance, (formally I.C.M. Solutions Limited), announces the completion of its re-branding exercise and launches a new website, www.mwinterimfinance.co.uk.

The company will continue to provide a professional independent interim finance director resource for small, medium and larger corporate businesses, working with owner managers and directors to facilitate the achievement of strategic and operational goals.

Some of the services MW Interim Finance provides include;

  • Forensic operational review, forecasting and profit improvement
  • Fixed asset, working capital and cash flow optimisation
  • Strategic business planning and development
  • Project appraisal, analysis and business modelling
  • Restructuring and business turnaround

 

Martin Walby, founding director, commented “despite the continued poor economic situation in the UK and the perceived slow road to recovery, 2010 is a new decade of opportunity, both in the UK and globally. MW Interim Finance will continue to provide an independent finance director resource for companies wishing to take the steps to benefit from current and future business opportunities”.

For further information on how MW Interim Finance can assist your business, either call Martin Walby on + 44 (0) 7876 566875 or email martin.walby@mwinterimfinance.co.uk

The latest set of indifferent UK economic statistics – Unemployment, Inflation and the Bank of England

The headlines are that unemployment has fallen again in February, by a whopping 3,000 and added to the fall of 7,000 in January is being highlighted as a sign that the things are getting better in the UK economy. The base on which the fall has taken place is around 2.5 million so the impact is really negligible. There are more serious issues behind the numbers such as; those receiving job seekers allowance rising by 23,500 to 1.64 million, and the consistently high figures of longer term unemployed. The hidden figures which are not counted are the “underemployed”, where employers have had to scale back hours in an effort to keep all their employees in work. The impact is lower take home incomes adding to the pressures on individual households and consequently lower consumer spending.

On the other hand, the head of the Bank of England, Mervyn King, had to officially write to the Chancellor again as inflation has risen to 3.5%, above the 2% Government target. Many expect this to be a temporary increase driven by factors such as the rise in VAT to 17.5% and higher fuel and transport costs.

Higher inflation and low interest rates – whilst good for those with mortgages and property in general is bad for consumers as the cost of living increases and the value of savings is eroded.

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