Funding Growth – ideas requested by HMG

To : businss.finance@bis.gsi.gov.uk
THREE EMAILS SENT
Funding Growth –
Strategy: create a “local-business society,” a quantum leap for a nation of shop-keepers.

TACTIC ONE: Prominently flag UK goods and services to increase local sales and thus increase local profits

Obviously the traditional suppliers of funds are not satisfying this role and won’t be able to for many ears as they repair the damage of their losses,. Therefore we need a new look. The only place new money can come from is us, the people. It has to come from the people, so lets create a local-business society, a quantum step up from a nation of shop-keepers.
This is an ideal role for David Cameron’s ‘Big Society’ as we need everyone to be involved.
There are only four routes to fund growth:
increase profit
borrow the money
issue shares to raise more capital OR
reduce the levels of stock and debtors, thus using less money
To increase your profit you can increase your prices, reduce your costs, reduce tax rates or sell more.
Let’s take the last one, we can all help achieve this. If every business can be allowed to add the Union Jack (UJ) as a logo to show their inputs of imported goods and services are less than 20% of all inputs for that business. It will be clear to customers at all levels that the product or service with the ‘UJ’ Logo is the one for them to choose.
UK businesses make more sales and make more profits to fund more growth.
The amount of imported goods and services will also decrease as we buy more locally. In addition the government instead of syphoning off some of this profit could give a tax holiday on the increased profits for (say) three years.
Importers would be quick to re-arrange their imports so that the value fal;ls below the 20% level by doing local processing instead of buying it in ready-made.

To : business.finance@bis.gsi.gov.uk
Funding Growth –
Strategy: create a “local-business society,” a quantum leap for a nation of shop-keepers.

TACTIC TWO: Locally funded “Local Investment Funds”

Obviously the traditional suppliers of funds are not satisfying this role and won’t be able to for many ears as they repair the damage of their losses,. Therefore we need a new look. The only place new money can come from is us, the people. It has to come from the people, so lets create a local-business society, a quantum step up from a nation of shop-keepers.
This is an ideal role for David Cameron’s ‘Big Society’ as we need everyone to be involved.
There are only four routes to fund growth:
increase profit
borrow the money
issue shares to raise more capital OR
reduce the levels of stock and debtors, thus using less money

We have new banks coming along to join the few untainted ones. Let these two groups create Local Investment Funds and then let them issue 5, 10 and 20 (*) year fixed term deposits where the tax payer/ investor gets 100% tax relief on upto £6000 invested each year. These could be named “Pension Bonds” and could be deducted from Gross Pay at any rate per month up to a maximum of £500 per month per payroll member, even pensioners.
The Local Investment Funds could fund loans or buy shares in local companies. They would publish details of their clients “Local Investment Fund Enterprises” (LIFEs) and the relationships with them eg whether and to what value they have loans or shares in them. The LIFs and LIFEs could be overseen by teams of local businessmen and the funds allocated by them. (Note: genuine businessmen not corporate executives or the self employed) and the interest, dividends and profits (and occasional losses) distributed to the LIF investors, free of any taxes.
Client LIFE businessmen could support monthly seminars to explain, once every six months, to their investors the effect their extra funding is having on their individual businesses and for example to report the number of new employees they have taken on.

*Interest rates could be set at the same level as CPI plus 1% for 5 yr bonds, CPI plus 2% for 10 yr bonds and CPI plus 4 % for 20 yr bonds, credited monthly. The Pension Bonds would mature to help provide further pensions.

To : businss.finance@bis.gsi.gov.uk
Funding Growth –

Strategy: create a “local-business society,” a quantum leap for a nation of shop-keepers.

Tactic Three: Name, shame and fine Late-paying Debtors

To Reduce the funding needs for debtors: Name and shame all organisations who do not pay their invoices by the date due. Even penalise them by a fine of fifty per cent of the sum(s) paid late, payable to the Exchequer, so that there’s no pressure on the supplier. (For disputed invoices the payment is paid into escrow.)
This not only reduces the funding need it also increases the velocity of money flowing through the economy.
Local companies will be required to publish details of all overdue unpaid accounts. They could also use the LIF teams and their monthly seminars.

To : businss.finance@bis.gsi.gov.uk
Funding Growth –

Strategy: create a “local-business society,” a quantum leap for a nation of shop-keepers.

Tactic Four: Encourage people who work out of town to think of themselves as ‘exporters’ brining their earnings back locally so that they can be used locally.

Encourage people to be less dependent on ‘imported’ goods and services and thus help their local area become more prosperous with more businesses and more jobs.

Encourage people to become better educated so that they get the job locally rather than a person ‘imported’ from elsewhere though the competition is tough and will increase. The result is less cost to the local society through reductions to their taxes.

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