Friday, 12 December 2008

3 further ideas to help the UK through the current economic storm

Purchasing the surplus housing stock of troubled home builders
The Government could consider purchasing surplus stock, particularly at fire-sale prices, from companies such as McCarthy & Stone and Crest Nicholson (both of which are restructuring and have roughly 5,000 unsold housing units) the government would be able to make an immediate impact on social housing, unclog the balance sheet of troubled homebuilders and allow construction activity to resume

The creation of a public fund for innovation
Also, establishing a Fund to support innovation in manufacturing and export oriented industries could incentivise R&D units and university based research to focus on creating goods and services for export. The UK economy will need to position itself for a changing economic landscape – one in which consumption and consumer spending will become less reliable engines of growth and external markets will become as much a destination for export as they were a source of goods and services imports

Long term tax breaks for export oriented and manufacturing sectors
Finally, the promotion of the UK (through tax credits and regulatory reform targeted to foreign entities) as a destination for cash-rich companies in China, India and a Middle East as a base for high-end manufacturing and export oriented industry.

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