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UK Growth, top down or bottom up?
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Sara G
Posted: 31 January 2025 12:50:24(UTC)
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AlanP2;332738 wrote:



Elected politicians have a time limited horizon of the next election, countries have a time horizon of centuries. No party wants to say we will spend £xxB, raised by additional taxes, to build the infrastructure this country needs for the next 50 years so that your children and grand children will benefit but that's what we need.


I don't think the necessary capital can be raised from taxes alone (or possibly at all), because we are already at historically high levels and the economy is struggling - it isn't just about it not being politically doable, it's about not causing a recession or shrinking the tax base further by imposing excessive tax burdens on companies and individuals.

What they really need to do (and what they should have done in the last budget) is to announce increased borrowing for capital investment. Unfortunately they have borrowed to fund revenue spending / public sector pay rises, so their options are now limited. The previous government should have done it, but failed to do so when they had the chance (and when interest rates were on the floor), and then were forced to borrow to fund the (ill-advised) Covid lockdowns instead, which left us where we are today - with limited scope to increase borrowing sufficiently to fund capital projects on the scale that they are needed.
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Jay P on 31/01/2025(UTC)
Newbie
Posted: 31 January 2025 16:12:35(UTC)
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Oh dear !

"AstraZeneca cancels £450m Liverpool investment, blaming UK government funding cuts"

And here was our esteemed chancellor using AZN in her rallying speech for Growth only a couple of days ago.
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Lindisfarne on 31/01/2025(UTC), Jay P on 31/01/2025(UTC), OmegaMale on 31/01/2025(UTC), Sara G on 31/01/2025(UTC)
ANDREW FOSTER
Posted: 31 January 2025 16:53:51(UTC)
#13

Joined: 23/07/2019(UTC)
Posts: 8,120
Newbie;332770 wrote:
Oh dear !

"AstraZeneca cancels £450m Liverpool investment, blaming UK government funding cuts"

And here was our esteemed chancellor using AZN in her rallying speech for Growth only a couple of days ago.


Why should the government fund such a thing, rather than the shareholders of a private company...?
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Newbie
Posted: 31 January 2025 19:46:13(UTC)
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ANDREW FOSTER;332775 wrote:
Newbie;332770 wrote:
Oh dear !

"AstraZeneca cancels £450m Liverpool investment, blaming UK government funding cuts"

And here was our esteemed chancellor using AZN in her rallying speech for Growth only a couple of days ago.


Why should the government fund such a thing, rather than the shareholders of a private company...?

In other news - KKR (which I own) and ENEI, two PE outfits have bid for Britain based Cubico Sustainable investments - an operator of wind and solar farms across Europe North and South America and Australia, as well as concentrated solar power and transmission line technology operations.

Infrastructure investors and corporate utilities have been drawn to renewable power developers and other service providers focused on the energy transition in recent years. However, some of the excitement has waned, especially in the United States (I wonder why - was it The Donald ?)

So our beloved govt gives handouts to such companies in the name of climate emergency - along come two PE outfits to buy such an outfit, then leverage the crap out of it knowing that the key lender/backer/financier is the UK government, then strip it bare and shove it back to the government (tax payer) with huge debts.

Brilliant economics - Classic outcome of realizing the gains (dividends, tax breaks, shifting profits and assets to other jurisdictions) and then socialising the losses.

I suppose this is better that investing the 14% into AZN (circa 65mn) and securing a UK interest including jobs, patents, taxes on a constant long term basis etc.

Wait the PE outfits deal can be dressed up as incoming monies and investments supporting the growth tale, when in reality is is merely taking from Paul and giving it a pack of wolves (or in the left minded term Capitalists) dressed up as Peter ?
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Sara G on 31/01/2025(UTC)
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