Simple measures can help in the downturn.

Lord Allesley has decided it is time he started putting forward a few measures that would help direct the nation out of economic slowdown (apart from an election that is).

The first is, as suggested very simple. Share Tax allowances across married couples with dependents. The effect of this is many parent (in the real world largely mothers) could then afford to stay at home should they chose. This would have a two fold effect, free up there jobs for those currently on benefits to do and secondly help fix broken British society as Children would have a more engaging home life where the only view of their parents is ironing or cooking, heaven forefend parents may have time to read with their children, or even play.

But how can the nation afford this? Simple its free. The working parent will leave a space in the market, if they chose to step out of employment, this means someone on benefits fills it. The reduction in benefits payments would more than cover the "lost" taxation.

This is an example of tax cuts stimulating the economy. LA believes many thousands of jobs would be created almost overnight.

Will the current government do this, LA doubts it.

LA.

EU Lala land

Lord Allesley has been to Brussels. Oh what fun! Having met the Leaders of the 3 mainstream UK parties, several MEP’s and many high ups from the UK reps office to EU, LA can report that he is almost lost for words.
It appears that the answer to the Global economic Crisis is closer EU integration.
We need more legislation, not less, we also need the EU to be involved in healthcare, security, the lot.(Apparently)
LA has always thought that Westminster Village is on another planet, Brussels is another galaxy. With very few exceptions, these people think interference will solve everything. They also believe the regulation is not a problem, just the implementation by States.
Social Engineering is rolling out, but who will stop it.LA believes in free trade, LA believes in a level playing field, LA believes Britain has led Global trade for centuries and should get on with it without pandering to French Farmers, Italian “Industrialists” or Latvian Lawyers.

Economic Cooperation, not undemocratic domination.

LA

PM spins whilst economy burns

On Thursday morning Allesley received a telephone call asking if he could attend a meeting that afternoon with the PM in Birmingham to discuss the economic situation. LA, had serious diary issues, but was told it was a small and private meeting, also confidential. On this basis LA canceled meetings and went along. Upon arrival at KPMG's offices in Bham, LA bumps in to a few acquaintances on his way in, as well as the press, not that confidential then? LA's colleagues had also been told, private meeting etc etc. After being taken in, there was a curtained off room, LA was not allowed to peak. The ante room, began to fill, 10 people, 20, 30..... Eventually to everyones surprise, curtain is pulled and a room laid out theatre style with about 200 seats. LA was furious, as were the majority of those present. When the PM turned up, with Mrs Balls (Cooper) the audience were subjected to a total PR stunt as GB explained how he was the greatest economic leader of the World, how his bank rescue plan would save us all. When he did receive a few questions, they were never answered, it was just hot air and spin, no acknowledgement of failure and none of the risk that the Bank rescue might fail.
BBC Thursday evening states PM had come to Birmingham to talk to business leaders, rubbish, GB had come to Birmingham to prance in front of the media.
This exercise was a waste of everyones time, should the PM not have been concentrating on saving the economy instead of raising his poll ratings.

LA

Lords or Commons?

LA is not convinced that in the 21st century ministers should really be in the Lords. Is Gordon Brown moving to an American model where his cabinet is made up of appointees, not elected representatives? Was it not Labour that thought the Lords should be more democratic? What next will Labour in its panic bring back Blair as PM from the Lords? We gave up having a PM from the Lords in 1902, it was seen as not accountable to the people. If its not good enough for PM why any other position.
LA thinks it smacks of desperation.

LA is also amused that in order to help an economic crisis caused through dodgy mortgages in the US and here, Mandleson, ex minister sacked because of a dodgy mortgage is brought in, oh the irony!

Act now to save businesses and jobs.

LA was delighted to see Alan Duncan on Sky say that the laws on administration need changing and need changing quickly in order to save good businesses and good jobs in extrodinary times.
As it happens LA is meeting with one of the BERR big wigs tomorrow and this is what LA had already put on the agenda. With banks abitarily removing long standing lines of credit on businesses, many are going to administartion. Once this happens the whole thing is madness. the administrators still think they can do deals in 5 days! Wrong, that was when money was cheap and the banks were queing to give it out. The administrators therefore chose to close the business and sell of its assets for pennies at auction. The main driver for this is their resposibility to maxamise return for creditors. In most administrations, the biggest creditor is HMRC, yes the tax man.
LA last week was trying to take a business out of administration, this would have saved up to 170 direct jobs and around 50 others. The deal fell apart over the timescale and the fact that an asset stripper effectivly offered £200k more. The company has closed. The system therfore maxamised its return for HMRC as a creditor. However it should be noted that the taxpayer is now picking up the social security tab for nearly 200 famalies. Crazy is the politest word LA can use, HRMC make a one off extra £200k max but will see that go out the other way every month whilst these people struggle to find work.
The government need to act now, decicivly and quickly. Such a move will save the small business economy, save jobs and stop a recession becoming a depresion.

LA will make his point, but is not holding his breath.