18 FINANCE - UK
AsianVoiceNews
AsianVoiceNewsweekly
www.asian-voice.com
9 - 15 February 2019
Consultant Editor Financial Voice Alpesh Patel Dear Financial Voice Reader, The Financial Problems of Your Children Our schools are in crisis. No, not because of lack of funding. Your children are brewing problems for the future – no, not childhood obesity. But lack of basic practical skills for life. I’ve said it before, we must teach digital skills, online banking, writing emails, networking, how pensions work, basic principles of loans, taxation, investment, savings. Our schools on the whole have Shakespeare on the menu and that is important because our legislators very much in touch with the needs of inner city problems that a touch of Hamlet can solve. But actually, you need schools with more remote learning, taught by the best teachers in the world, on demand videos and if the children do not pay attention, the ex-Military Sargent will be able to sort that out. This way you ensure consistency of quality of education far more than at present. Of course you need teachers but for the things remote video learning cannot do. Why does a State school student in Glasgow not have access to a great teacher from Eton via video courses? The government can pay for the one of costs of creating the courses. Who decided that Egyptian history is more important than understanding how to use a search engine or the internet. Will there be controversy on what is taught? Sure, but an independent board of the likes of Bill Gates, Richard Branson, and Professors from University and Captains of Industry can thrash out the subject areas. We would have a more productive work-force, cut costs, improve creativity because children could learn in a modern way and do what they find more interesting because there would be more choice without the expense of more teachers. And in case you think I am an anti-education barbarian – I am a Visiting Fellow in Business, Oxford University and have degrees in Law and in Politics, Philosophy, Economics. I know education is important. But it is still as it was 200 years ago – with the odd sprinkling of computers. Don’t believe me? Bill Gates teaches his children through the free Khan Academy. I teach people through my free webinars, not in person in a classroom. www.trading-champions.com
UK businesses shying away from taking risks: Deloitte
How to fund a business The vast majority of business in the UK are funded by entrepreneurs themselves or family and friends. It’s not unusual to hear of small business owners who have mortgaged their own house to turn their dream into reality. But this approach can hamper growth. The government’s Patient Capital Review found that even some of the UK’s highest potential, most innovative start-ups can struggle to scale-up because of a lack of long-term finance. From governmentbacked programmes to private investment networks, there are lots of initiatives aimed at helping new businesses find the capital they need to get off the ground. Government grants depend on the size, industry and age of a business. For businesses
based in England that have a plan to create or safeguard jobs and are looking for less than £1 million, finance could be secured through the government’s Regional Growth Fund (RGF) scheme. Through the Governmentbacked Start Up Loans scheme, businesses could secure a loan of between £500 and £25,000. The Start Up Loans scheme works with organisations such as The Prince’s Trust which grants in special circumstances to 18-30-year-olds starting a business. The Prince’s Trust also provides access to training courses, mentors, coaches and expert advice as part of the package to take the business from idea to launch. For businesses that export goods or services, government support may be
available through UK Export Finance (UKEF). The UKEF underwrites loans from banks to businesses exporting goods, making it less risky for the bank, therefore encouraging them to lend. Small businesses may seek funding from venture capitalists (VCs) who invest their money in innovative businesses at an early stage in return for a share of equity. The British Private Equity & Venture Capital Association provides information to help businesses gain access to this kind of investment. Crowdfunding follows in the footsteps of equity finance by allowing many people to invest smaller-sized amounts in return for equity or other nonfinancial rewards and it is worth looking into these alternative routes.
A solid business plan is key to sizing up how much money a business will need to trade and develop in the first few years. Thinking about expenses and how to control costs from the beginning will reduce the amount needed. A mobileonly business account with Starling Bank, which has no monthly fees, can help small businesses and sole traders keep on top of the figures with real-time notifications every time money leaves or enters the account, the ability to categorise different transactions and the option to export figures to share with an accountant. Find out more about Starling Bank at www.starlingbank.com.
Retail giant Marks & Spencer under fire over vegetarian biryani wrap Britain's retail giant Marks & Spencer (M&S) has been accused of “lazy product development” by some leading Indian food experts in the UK after a new vegetarian biryani wrap hit the market as part of its Plant Kitchen range. M&S was accused of using popular terminology to suit its marketing without proper research, with Indian food experts taking to social media to point out that biryani comes in a bowl and not in a wrap. Mallika Basu, UK-based author of 'Masala: Indian Cooking for Modern Living' said, “I started the row last year with the ridiculous
Bengali Turmeric Kit by M&S so it's good to see more food writers and chefs getting involved in this debate.” The row was triggered when another Indian-origin chef in the UK, Maunika Gowardhan, took to Twitter to slam the new wrap. “There is a giant postcolonial hangover hovering
over the Western view of Indian food anyway, but it's simply not good enough to be commercialising our flavours and historically significant dishes without proper research and due diligence. Hopefully, this will send a loud and strong warning to other retailers and businesses. The Indian community is not going to take lazy product development lightly.” Gowardhan, author of 'Indian Kitchen', tweeted, “Thanks but I like my biryani with rice in a bowl not a wrap. Seriously M&S!?” She questioned, “No problem with a twist! Call it
an Indian Spiced burrito but please don't make assumptions that using Indian terms loosely doesn't imply the dish does require certain ingredients to feature in them. Let's just call hot water tea then shall we.” Other chefs however, jumped to the defence of the retailer saying it was responding to demands for vegetarian options with the Sweet Potato Biryani wrap. Marks & Spencer said, “M&S is famous for its food innovation and our developers use a fusion of different flavours and ingredients to create an exciting range of products to appeal to customers' tastes.”
Nissan chooses Japan over UK to build new X-Trail car According to a survey by accountancy firm Deloitte, major UK businesses' appetite to take on financial risk has fallen to its lowest level in nearly a decade due to fears of “the hardest of Brexits” and rising US protectionism. The world's fifth-largest economy is less than eight weeks away from leaving its biggest trading partner, the European Union, and British politicians have so far refused to back a transition deal negotiated by Prime Minister Theresa May. Deloitte's chief economist Ian Stewart said, “Corporates are positioned for the hardest of Brexits, with risk appetite at recessionary levels and an intense focus on cost control.” Another report from a survey conducted by the Institute of Chartered Accountants in England and
Wales (ICAEW) also showed falling sentiment and pointed to first-quarter economic growth of just 0.1 per cent, the joint-weakest since 2012. Businesses are not just afraid of short-term disruption: 78 per cent of the 110 companies surveyed by Deloitte said they expected Brexit to damage the economy over the long term. Less than 10 per cent of chief financial officers surveyed in the Deloitte survey said now was a good time to take greater risk on to their balance sheets, the lowest in over nine years. The survey polled chief financial officers from major UK-listed companies with a combined market value of £390 billion, as well as UK subsidiaries of large foreign firms, between January 8 and January 24. The ICAEW polled 1,000 accountants between October 22 and January 18.
In a heartbreaking U-turn, Nissan has confirmed that the new X-Trail originally planned for its Sunderland plant will in fact be made in Japan. In a letter issued to its workers, it said continued Brexit uncertainty is not helping firms to “plan for the future”. Back in 2016, Nissan said it would build the new model in the UK after “assurances” from the government. Unions described the news as “disappointing” and said they were “seriously concerned”. UK government said the decision was a “blow to the sector” but that no jobs would go as a result. Nissan has made cars at Sunderland since 1986 and employs almost 7,000 people. Talking about its decision, Nissan said that since 2016 “the environment for the car industry in Europe has changed
dramatically,” including “changing emissions regulations”. Sunderland Central MP Julie Elliott said the move was “devastating news for our city and the region.” She added, “The uncertainty around Brexit is always a factor now in any decisions made in manufacturing.” Labour leader Jeremy Corbynn said, “The Conservatives' botched negotiations and threat of a
no-deal Brexit is causing uncertainty and damaging Britain's economy.” UK's car industry has been suffering a major rough patch from quite some months. Job losses have been announced at Jaguar Land Rover and Ford, and the cancellation of Nissan's X-Trail investment at its Sunderland plant is just one of the latest disappointments.
The industry is nervous about border taxes and customs delays disrupting its just-in-time model of manufacturing. Nissan has been clear the decision to cancel its Sunderland X-Trail investment is a commercial decision. But it chose to say “continued uncertainty” around the UK's future relationship with the EU “is not helping” it plan for the future. Conservative Brexiteer Jacob Rees-Mogg said Nissan had “all sorts of problems that are nothing to do with Brexit” including “very considerable corporate governance problems” arising from ex-chairman Carlos Ghosn's arrest. Production of the Qashqaithe best-selling crossover vehicle in Europe, makes up the majority of the current work at Sunderland.