Analysis: UK crisis forces 'off kilter' businesses to halt investment

  • 📰 Reuters
  • ⏱ Reading Time:
  • 60 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 27%
  • Publisher: 97%

United States News News

United States United States Latest News,United States United States Headlines

British companies have struggled to navigate a fractious political landscape ever since Britain voted to leave the EU without a plan. But the fallout from Prime Minister Liz Truss' now-abandoned mini-budget has taken that to another level

A two-year scheme to help homes and businesses with high energy costs has been cut to six months to save money.

Raja sold her home and a coffee shop to start Nim's Fruit Crisps, based in Kent, south east England, over seven years ago. "If we borrowed a lot of money, we may not be able to pay it back. It's far too risky at the moment," said Raja, who employs 22 people and had planned to increase that to 30 over the next 18 months.

But when he looked to see if he could combine that income with a 10-year loan to finally launch a new version of his product in Britain, he found borrowing costs had leapt.Britain's latest crisis started on Sept. 23 when new prime minister Truss and then-finance minister Kwasi Kwarteng announced 45 billion pounds of unfunded tax cuts to snap the economy out of stagnation.

One executive at a U.S. tech company told Reuters at the recent conference of Truss's Conservative Party that corporation tax was a "rounding error" for his global business, and that issues like visas were a bigger driver of investment decisions.Sorrell, who built WPP into the world's biggest advertising company before creating S4 Capital, said the crisis had come at the worst possible time, just as companies planned budgets.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

It is increasingly clear that British PM Liz Truss can only speak without real action. She can only say apologies after apologies without being able to provide solutions for the British economy. Enjoy inflation and economic recession, madam Liz...😉😘

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in US

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Goldman Sachs to restructure businesses, combining investment banking and trading: reportGoldman Sachs is planning to restructure its biggest businesses into three divisions, which include combining investment banking and trading businesses into one unit.
Source: FoxBusiness - 🏆 458. / 53 Read more »

WSJ News Exclusive | Goldman Plans Sweeping Reorganization, Combining Investment Banking and TradingThe Wall Street firm will combine its flagship investment-banking and trading businesses into one unit, while merging asset and wealth management into another. Hi toilet paper . Eventually Goldman will own everything and everyone. They are our Xi Jinping keeping trading and investment banking separate was a vital lesson learned from the 'fabulous fab' mortgage securities fiasco years ago
Source: WSJ - 🏆 98. / 63 Read more »

Goldman Sachs to combine investment-banking and trading businesses in sweeping reorganizationGoldman Sachs Group Inc. plans to fold its biggest businesses into three divisions, undertaking one of biggest reshuffles in the Wall Street firm’s history. Um...conflict of interest anyone? Shuffle the bad with the good, presented as One mortgages BTC
Source: MarketWatch - 🏆 3. / 97 Read more »

Biden's business investment fantasyThe central concern returns: Free market capitalism, small government, and the rule of law are the signposts for national prosperity, writes James Rogan. A manufacturing renaissance is a JoeBiden fantasy.
Source: dcexaminer - 🏆 6. / 94 Read more »