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Posts Tagged ‘Help for all’

Nobody else will ever compensate the loss of a good or viable business in circumstances out of the owner’s control. A Government that champions itself as the party of business should know better

March 29, 2020 2 comments

img_5431Watching events as they are unfolding is painful, especially when you know they are avoidable and that our decision makers have alternative choices. It has prompted me to write passionately over recent days about how our politicians should be mitigating the impact of the COVID-19 shutdown.

The ‘help’ that the Government is giving people is not only piecemeal – leaving holes for many that it is supposed to be helping, but for EVERYONE and specifically the people who need help that the response to the shutdown doesn’t reach, what the Government is doing doesn’t go anywhere near far enough.

Everyone has something to say about all of this – especially those who have a platform on social media, in the press or on TV.

But the problem with the ‘profiled’ speakers who have been allowed to become too influential (Sadly there are too many to mention), and with it too fond of their own voices, is that the words they are giving us are usually little more than subjective opinion. What they pump out to every ear that will hear them is not based on experience or even getting out there and talking to real people, but how they look at the world and how they think things should be. It is based purely on the scope of the very narrow lens through which they see their own life.

Whatever our experiences of life up until we found ourselves at this point, we are all afraid. But we are afraid for different reasons.

My fear is not about catching Coronavirus and what it could do to me – as I’ve done the life-threatening illness thing before. It’s how the response to the Crisis is creating many more problems than it is going to solve, and that if we are together going to be able to make the best of the opportunities and positives that we have ahead of us once the critical stage of this Crisis is over, we do not have the right people leading us to make that either a practical or tangible option for us all.

The people I am most afraid for as I am writing this today, are the self-employed and the owners of small businesses who are likely to be sat somewhere right now on the verge of crying. Many are facing up to the stark reality that on one hand they have been stopped from trading for what in principle if nothing else is a good reason, but on the other they have had their ability to service bills, pay back debt and survive taken away from them without any bad decision on their part. This isn’t the result of something they have done, or could have planned for and there has been no opportunity for choice on their part.

What they are now experiencing is not happening in isolation. Many people will be affected by a chain of events that will start with them and cascade throughout our economy reaching every sector and every level of the supply chain.

People who work for them will lose their jobs. Suppliers and Service Providers will not have their bills paid. Customers will lose shops, their local tradesman and local services of all kinds that are not supplied by big business – because big business cannot offer the level of service and make the margins that their shareholders demand by offering customer experiences of this kind – whereas all these committed small business owners and self-employed people before Coronavirus did so willingly and by choice to build relationships with their customers and differentiate from the profit-led Corporate behemoths.

For those who have already lost or now stand to lose what was only weeks ago a good and viable business, no form of compensation will make up for the consequences of that loss, which will hit them very hard – especially when the responsibility for the loss sits squarely with our Government and the choices it has made.

From late 2010 I experienced what it was like to be in a very similar situation when the successful business I had set up and run for nearly 7 years had a key contract pulled from under me, simply because of changes to my customer’s marketplace. It was in no way related to the quality and value of the service I delivered.

Even though I had anticipated changes might come to the industry and I had negotiated clauses within our contract to make sure everyone would get paid and I would be left with enough to start again, I never anticipated that when it came down to it, a high profile customer like mine would refuse to pay a £six-figure final bill, simply because the legal system is such that it knew it could and would get away with it.

I was dropped completely, well and truly in the shit. Not because it was the conscious aim of the managers and lawyers responsible to get up and screw me, the people who worked for me and the people who supplied me that day. They did it, because the world we live in tells us we don’t have to think about the impact of what appears a sound business decision and has no downside or consequences for anyone else.

This is the kind of limited, self-serving and blinkered thinking that the Government is employing right now.

After months of fighting, I put my Company into Administration, not because I wanted to or felt it an easy way out. I did so because I simply didn’t have any other choice.

It’s because I’ve been in that situation that I can say openly that for many, that’s where the real problems begin.

Self-employment or owning and running a business is different for everyone and for different reasons we all find ourselves with the ability to contribute different things to what we do.

For some of those who are facing down the reality that the money the Chancellor has allocated won’t go far enough or won’t arrive soon enough, they will at least not have tied themselves into loans, leases or contractual arrangements of any kind to support their business.

The lucky ones -may have their day-to-day needs met fully.

But it’s more likely they will be met only in part by the money that the Chancellor has allocated to the self-employed.

All of the domestic bills like the rent, mortgage, phone and everything else still have to be paid.

But the people most likely to be able to manage on being given what is pretty much the average wage are the ones who are most likely walk away with a skill or trade still behind them that is always in demand by others. Put simply, if they’ve worked for themselves and had problems, it simply won’t be thought about.

However, as you scale up and away from the domestic bills that you may already be feeling left high and dry with when it comes to paying, for the self-employed who are directors, partners and company owners, there are further levels of commitment to meet and the reality they are facing is simply not the same.

Vehicles, Premises, Licenses, Fuel, Tools, Insurances, Loans, Vehicle Tax, Mortgages, Professional Fees, Bank Fees and plenty of other things need to be paid for – even if a business is standing still. So giving anyone what is the maximum of the average monthly wage who own and runs a business – if they qualify – is far from being a good start if the aim is to stop business falling over when you have told them to stop trading.

The people who own, run and set up small businesses without third party investor funding form the backbone of our business-based economy. They are the entrepreneurs and the people taking the real risks and there is a lot more to it than the tax status of being ‘self-employed’.

They are people who have really done something on their own who shouldn’t be treated like social pariahs or like they don’t exist when their business ‘fails’.

Beyond the financial hardship and turmoil that the Government is condemning them to face, there is a very harsh reality of how people in this Country judge what they inevitably assume to be failure, and in particular where the incorrectly but nonetheless interchangeable terms bankruptcy and administration are concerned.

Instead of looking further and more closely at the reality of why people may have found themselves dealing with the horrific process of managing their own bankruptcy or putting a company they own into administration, there is an immediate default assumption of wrongdoing on the part of those looking on, rather than even the merest hint of appreciation for the value of the experience and the lessons that will inevitably been learned.

Some businesses fold in ‘normal times’ because of stupidity or more likely because the person driving it is out of their depth and in a field they don’t understand. But for just as many if not many more, the reasons that have brought them to that place are simply out of their control.

These are people who would actually be an asset to any business because of their experience of dealing with these problems. Instead business all too often views them as being a risk and if there isn’t change in the way society looks upon the realities of business closure and what caused them, many brilliant people of exceptional understanding and talent will quickly join the ranks of the long-term unemployed.

It is not too late right now for the Chancellor and the Government to take a leap backwards, for them to review and restart the package of measures they are putting in place and this time get it all right from the start. I for one would certainly think it big of them if they do.

But as the days of this shutdown become weeks and the weeks then become months, good businesses and employers that were viable only days ago will be forced to close with companies going into administration and the owners declaring themselves bankrupt. Not voluntarily or because they didn’t know how to run their business. But because a Conservative Government didn’t understand the realities and consequences of the decisions it made in a crisis and wouldn’t consider the alternative choice.

Nobody in the supply chain of business, industry, services, property or anything else will lose out during a standstill, IF the flow of money throughout that chain is held up at every stage. Not just at the start.

Politics, political leanings and tribalism don’t count here. It’s simply about doing what is right.

The only way that EVERYONE who has lost their income as a result of the Shutdown can be treated fairly, whilst not being condemned to suffer or lose their livelihood too, is for the Government to stop ALL bill payments to ALL creditors, ALL interest payments and the accumulation of debt for EVERYONE – until such time as the Shutdown is over and EVERYONE has been able to return to work.

To not do so when it is a clear option shows an absurd level of inability on the part of Politicians to step out of their own shoes to taste and feel the reality of how the decisions they are making are going to manifest in our lives.

If businesses of the type, size and number that will be left to fail because the Government hasn’t taken steps to treat EVERYONE fairly, and above all THE SAME, the British economy is going to fall over a cliff in a way that will never allow business to operate in the same ways again.

What would be good to see right now is the politicians that we have elected doing the right thing and making the right choice. We are now in very different times, and if they do not do so, people will suffer the impacts of the choices that they have made for a long time to come.

When this Government falls or we have new Elections, the Electorate will not be forgiving.

The majority of the victims from the Coronavirus will not be the people who have died or have been personally touched by grief as a result of the illness it causes. Most will be created by the missed opportunities, poor decisions and the failure to act equitably on the part of politicians driving an avoidable tragedy for us all that would not have been necessary if the Government had thought differently and made an alternative choice.

To those reading this blog who may be staring down the barrel of the business closure gun, I sincerely hope that the Chancellor will have a lucid moment, grow a pair and reconsider his choice.

Please hang in there as long as you feel that you can do so, because we have to hope that this episode will be shorter than we all quietly suspect that it will be, and that the shortness of time will therefore make closure something you can avoid.

If it doesn’t, please be assured that there are many of us out here who care. Closing down your business will be tough for many reasons that days ago you would never have even dreamed of. But it will be easier for you to deal with and recover from if you are honest with yourself about what you can and should do, and take all the steps you can to see the process through in the right way.

I believe that the experience that we are all now commonly sharing is going to change the way that most of us view the World. The communities we live in, the businesses we work in, the people we interact with and how we interact with them are all going to change as a result.

I am hopeful that when we come out of the other side of this, we will all consider the impact of the way we think about other people and the way that we then treat them and we will all be open to an appreciation of the different circumstances people find themselves in, that they may not be responsible for and were never there by choice.

 

 

 

 

 

 

 

 

 

 

 

 

 

We ALL need bills & interest put on hold and enough money to eat and be clean. Government bullshit about Subsidies, Loans and Grants helping us now or in the long term is simply f**ktarded

March 20, 2020 14 comments

It doesn’t matter if it’s electricity, gas, water, credit card, a loan, a lease, rent, a mortgage, phone, broadband, TV streaming, contract subscriptions of any other kind, or anything else. It is the ceaseless demands of the private, profit-making interests in this Country being allowed to continue sucking money from our pockets that is the real problem people are facing now and will continue to do so long after Coronavirus has been put in its place.

Subsidies, Loans and Grants from the Government make great headlines when politicians are obsessed with how things look. But these hollow actions are giving legitimacy to the continuance of profiteering and endless money making on the part of commercial interests and what we have come to know as ‘the few’. All at a time when there is no longer any excuse for the people we elected to provide opportunities for the usual suspects to carry on making money at our expense, whilst we cannot earn, and as if they are entitled to act, behave and continue doing so like gods.

By allowing the economy to unravel, pretending it can be propped up by giving people the means to pay bills that could otherwise be put on hold so that everyone is in the same position, whilst pushing many people and businesses into what will quickly become unserviceable debt, the Government is initiating a downward spiral for this Country and what should be a robust economy.

The outcomes of this political ineptitude will be far worse for real people and for businesses over the long term than the outcome from the temporary hit that the Government should be taking on our behalf right now.

The pathway that the Chancellor has taken so far indicates that the Johnson Government is either incompetent and doesn’t understand the reality that people like small business owners, Deliveroo riders, people on zero hours contracts and those simply laid off from jobs in cafes and bars face, or they are intentionally using a crisis to assist in shackling all of these people and many more into forms of debt and the emotional bondage that accompanies it, simply so the friends and supporters of the Government can look at the piles of cash that they already have and smile as they start making even more.

Whether deliberate or created by stupidity and ignorance on the part of politicians who should always know better, the situation that this Government is now facilitating for us all will quickly become little more than profiteering from the misery of the many, simply to line the pockets of the few.

No matter what anyone says – whether they are an MP, so-called ‘expert’ or specialist, journalist or anyone else who has fashioned themselves as part of the ‘celebrity cause’, the solutions that the Government are now offering up do not go far enough in just about every way.

The PM, the Chancellor he appointed, the Government and the Politicians around him have the power and therefore the means to do whatever is necessary to help all of us and keep the Country in the best position going forward as it is possible to do so. But that is not going to happen if politicians are misguided by the self-interests and biases of the people and influences around them, rather than the Public at large – which should always be any Governments one and only cause.

Extraordinary times require extraordinary measures on the part of the people that we have elected to lead us.

This means they must step up, read the situation for what it is in reality for everyone – rather than what they think it might be or what their advisers are telling them – and adopt a much bigger, realistic and worldly view.

Economic thinking is just another set of ideas that become real simply because it is the line that people choose to believe.

Current economic theory is one founded upon the idea that money must be kept flowing at all times, just as if it is a blood supply that cannot ever be stopped. It works and operates on the basis that money and the systems that support its generation and movement are the only important thing.

They are not.

What economists and the people who have been influenced into thinking this way are failing to consider, is there is something far more important than money. That is the people and the communities that we live in. Beyond the thinking and the ideas that the ‘money men’ and their supporters choose to accept, there is most definitely another and very clear way to approach this crisis which is an option.

As such our decision makers are currently making a choice. One that is all about profit or all about them.

It should be people first. Money only when its sensible to return to it thereafter.

To deal effectively with the Coronavirus Crisis and without long term fallout for the many, the economy as it stands can be and should be shut down and stopped from operating in its current form.

Interest accumulation should be halted, and a payment or repayment holiday imposed on everything – whether it is for domestic use or for business – so that EVERYONE is being treated fairly and just the same.

The Government should temporarily renationalise all essential utilities and services – that’s the ones that were sold off and should be in the hands of non-profit making management and ownership anyway – and simply take the steps necessary to underwrite supply to ensure that the essential services the public need are simply provided for the duration of the Crisis without the need for anyone to worry about how they continue to pay.

For the people who have been laid off, have had to stop trading, have had their hours zeroed out or have had their incomes stopped by the Coronavirus Crisis in any way, there should be a basic income provided to cover the costs of food and essential items so that everyone is able to function in their homes and remain clean and healthy in every other way.

To do so would ensure that the people who have been left completely vulnerable and at the mercy of circumstances that they had no part in creating, are able to standstill and most importantly survive at the very least, without anything changing. They will therefore placed in the best situation possible to pick up and return their own lives to normality alongside those of everyone when the Coronavirus Crisis is accepted as being over and what will then become life as usual is once again ready to begin.

For the businesses and the workers who are able to continue working throughout the Crisis, the payment holiday that they will then all inadvertently receive will itself be a bonus and for many of them thanks enough.

Yes, the Government could and should now be doing this.

MPs, Politicians, Government Officers and Advisors must start thinking outside of their very tunnelled and out-of-tune Westminster box.

Just to begin with, these are preventative steps the Government should now take:

  • Ditch the £Multi-Billion plan for Grants, Subsidies, and underwriting Loans
  • Stop Interest payments and accumulation of any kind
  • Stop Loan Repayments 
  • Stop Mortgage Repayments
  • Stop Rent Payments
  • Stop Leasing Payments
  • Stop Utility Bill Payments
  • Stop Phone Payments
  • Stop Broadband Payments
  • Stop TV Streaming Payments
  • Stop Insurance Payments without penalty for any function not in use whilst maintaining ongoing cover for capital value without charge
  • Stop any other form of contract subscription which is non-essential in any form

And a here are some proactive steps that the Government should also begin by taking:

  • Provide a Basic Income to cover the cost of food and essential items for everyone, their dependents, and the people they care for, who has lost their income as a result of the Crisis 
  • Provide a top-up for anyone, their dependents, and the people they care for who’s income has been reduced to a level below that which matches that above
  • Take all former public services that were privatised back into temporary Government control
  • Provide gas, electricity, and water to every household for the duration of the crisis without charge
  • Create legislation that outlaws profiteering or price gauging of any kind, with companies, their directors or the individuals fined heavily or jailed when charged
  • Create legislation that prevents any commercial or private interest seeking compensation or interest of any kind from anyone or any business who has not paid them for the duration of the crisis, in the future at any time.

Setting any of us up to fail in the long term as a result of implementing policies during a time of crisis that have not been through will not be in the best interests of anyone. Least of all the Politicians who are failing us by coming up with such stupidity or lack of foresight in the first place.

Fundamentally, the approach currently being taken is morally as well as practically wrong.

This National Crisis and the future of this Country of ours simply demands thinking from them that is new.

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