- Original Poster
- #1
I came across an interesting article in Management Today (A business management magazine) which put forward some interesting suggestions of how Britain could avoid a double dip and get back on its feet. My opinions are mixed on some of these suggestions and I would be interested to hear your views.
1: TORPEDO OUR OBSESSION WITH HOME OWNERSHIP
The first suggestion made by Management Today focuses on why Brits feel the need to tie up ludicrous proportions of their take home pay into their mortgage.
MT explains that mortgage money could be far more productively saved or spent elsewhere rather than being locked up in bricks and mortar. In 1953 the proportion of UK home ownership was 32% and now the figure is close to 68%
I DISAGREE: At present it is actually more financially beneficial to have a mortgage than it is to rent. MortgageStrategy.co.uk estimates that it is actually £100 cheaper per month to buy a house rather than renting one. For more information click here
2: GET OUR KIDS READY FOR WORK
With more and more employers highlighting the lack of high calibre school leavers, the biggest threat to the UKs long-term competitiveness could be the failure of our education systems.
I personally for one agree with this point. Despite academic exam results improving year, upon year, do school leavers really have the necessary skill sets that employers seek?
A recent CBI survey of more than 500 employers revealed that 44% of them had to invest in some sort of remedial training for school or college leavers to address skill deficiencies.
Management Today suggests that we should introduce a compulsory employability qualification for 16 year olds, designed and taught in partnership with schools and local businesses. They called it a driving test, but for jobs.
I AGREE: In my earlier days; through high school, college and finally through university, I did sometimes question the practicality of some of the theories and subjects that were covered. I think educating kids about what skills various industries require is crucial. This will help kids/young adults to make informed decisions on what courses, apprenticeships and general skills they should pursue.
3. STAGGERING INCOME TAX
This point may raise a few eyebrows. As we know, Income tax is currently banded and the more you earn the more you pay.
Management Today makes the suggestion of income tax bands that rise and fall according to how old you are. They recommend a low base of 10% for those under 25 and increases up to a peak of 60% for those aged 60 to 65.
Their ideology focuses on the imbalance in wealth created by the property boom in the 1990s which created a glut of wealthy empty nesters sitting on a fortune through the positive equity created in their bricks and mortar simply because they were born at the right time. Management Today goes onto explain their children by contrast, are the first generation to be poorer than their parents in living memory.
This would help the younger generation get on the property ladder (contradicts the first point they make), start investing in a pension and all those grown-up things which they say they cannot afford to do now.
I DISAGREE Im 24 and on the face of it, this seems like an attractive proposal, however when I reach my mid 30s, with a mortgage and family to support, would I be happy to pay 40% or more despite being on an average salary? I think not.
4. Light a real red tape bonfire
With the introduction of departments like the Office of Tax Simplification (OTS), the government is attempting to identify and eradicate red tape that actually causes more harm than good.
The forum of Private Business recently estimated that complying with bureaucracy costs the nations small businesses some £16.8bn annually.
Management Today suggests that this money could instead be invested in innovation and growth. They go on to mention initiatives such as simplifying employment law, to make it cheaper and less terrifying for small businesses to hire more staff and fire them when necessary.
I AGREE need I say more
5. Get ready for the Olympics
The Olympics is inevitably going to help boost the economy. With the weak pound and the Olympics just around the corner, boosting tourism is a no brainer.
Management Today paint a picture of millions of British tourists enjoying the regional delights on offer and spreading their much needed cash about our beleaguered economy.
They suggest that VAT exemption should be extended to all visitors from abroad with preferential rates for accommodation and attractions which will help attract more visitors.
I AGREE (with some scepticisms) I agree that Britain should make the most of the Olympics , however the idea of giving VAT exemptions to tourists seems a bit farfetched in my opinion how would such a thing be managed?
Please share your thoughts too
1: TORPEDO OUR OBSESSION WITH HOME OWNERSHIP
The first suggestion made by Management Today focuses on why Brits feel the need to tie up ludicrous proportions of their take home pay into their mortgage.
MT explains that mortgage money could be far more productively saved or spent elsewhere rather than being locked up in bricks and mortar. In 1953 the proportion of UK home ownership was 32% and now the figure is close to 68%
I DISAGREE: At present it is actually more financially beneficial to have a mortgage than it is to rent. MortgageStrategy.co.uk estimates that it is actually £100 cheaper per month to buy a house rather than renting one. For more information click here
2: GET OUR KIDS READY FOR WORK
With more and more employers highlighting the lack of high calibre school leavers, the biggest threat to the UKs long-term competitiveness could be the failure of our education systems.
I personally for one agree with this point. Despite academic exam results improving year, upon year, do school leavers really have the necessary skill sets that employers seek?
A recent CBI survey of more than 500 employers revealed that 44% of them had to invest in some sort of remedial training for school or college leavers to address skill deficiencies.
Management Today suggests that we should introduce a compulsory employability qualification for 16 year olds, designed and taught in partnership with schools and local businesses. They called it a driving test, but for jobs.
I AGREE: In my earlier days; through high school, college and finally through university, I did sometimes question the practicality of some of the theories and subjects that were covered. I think educating kids about what skills various industries require is crucial. This will help kids/young adults to make informed decisions on what courses, apprenticeships and general skills they should pursue.
3. STAGGERING INCOME TAX
This point may raise a few eyebrows. As we know, Income tax is currently banded and the more you earn the more you pay.
Management Today makes the suggestion of income tax bands that rise and fall according to how old you are. They recommend a low base of 10% for those under 25 and increases up to a peak of 60% for those aged 60 to 65.
Their ideology focuses on the imbalance in wealth created by the property boom in the 1990s which created a glut of wealthy empty nesters sitting on a fortune through the positive equity created in their bricks and mortar simply because they were born at the right time. Management Today goes onto explain their children by contrast, are the first generation to be poorer than their parents in living memory.
This would help the younger generation get on the property ladder (contradicts the first point they make), start investing in a pension and all those grown-up things which they say they cannot afford to do now.
I DISAGREE Im 24 and on the face of it, this seems like an attractive proposal, however when I reach my mid 30s, with a mortgage and family to support, would I be happy to pay 40% or more despite being on an average salary? I think not.
4. Light a real red tape bonfire
With the introduction of departments like the Office of Tax Simplification (OTS), the government is attempting to identify and eradicate red tape that actually causes more harm than good.
The forum of Private Business recently estimated that complying with bureaucracy costs the nations small businesses some £16.8bn annually.
Management Today suggests that this money could instead be invested in innovation and growth. They go on to mention initiatives such as simplifying employment law, to make it cheaper and less terrifying for small businesses to hire more staff and fire them when necessary.
I AGREE need I say more
5. Get ready for the Olympics
The Olympics is inevitably going to help boost the economy. With the weak pound and the Olympics just around the corner, boosting tourism is a no brainer.
Management Today paint a picture of millions of British tourists enjoying the regional delights on offer and spreading their much needed cash about our beleaguered economy.
They suggest that VAT exemption should be extended to all visitors from abroad with preferential rates for accommodation and attractions which will help attract more visitors.
I AGREE (with some scepticisms) I agree that Britain should make the most of the Olympics , however the idea of giving VAT exemptions to tourists seems a bit farfetched in my opinion how would such a thing be managed?
Please share your thoughts too
