A lot has been written in the last week about the effect of AAA and the possible downgrading of the UKs status.
Most of our clients which comprise of SMEs do not really care about our triple A rating, especially since they know that the clever guys at the rating agencies are still the same guys who in 2006 and 2007 thought that AIG, RBS, Lehman Brothers and Lloyds were commendable businesses. Small business owners and entrepreneurs also know that the talk about AAA, bank lending and quantitative easing is totally irrelevant to them. What they need are initiatives to energise the economy.
I think I mentioned a little while ago; rather than initiating another wave of quantitative easing we should be encouraging SMEs to grow. Surely by promoting small businesses to grow and expand would be a better use of the Governors cheque book. Instead of constantly pumping money into the banks, maybe we should write a £50bn cheque and distribute the wealth among UK SMEs.
The benefits for the economy would be far greater because the effect would make sure that this sum of money provides a kick start. Linking it to a ‘buy British campaign’ would mean that a business would only get a share of the £50 billion if customers purchased from a British company (just to make sure that it doesn’t end up in a big Liechtenstein account for Starbucks, Google or Facebook!). Maybe this will avoid us being stripped of our AAA rating caused by an uninspiring debt mountain.
We would love to hear your views on the best way of growing the economy and ways that we can demonstrate growth for the ratings agency. Leave your thoughts below;