Political Factors Effecting Businesses

[CoraHarrison]

I asked a similar question yesterday, but this is a little more loose in the sense of what I want to know...

Basically are there any political changes in the past five years that have effected businesses, if so what?

Thanks for you're help

[factor-fiction]

I will have a think- but can I just point out for now that if this is the title of your essay it should be AFFECTING not EFFECTING

[CoraHarrison]

Spelling is not my strong point, thank god for spell check lol.

[factor-fiction]

Spellcheckers won't help tell us when to use 'affect' and 'effect'.
I've got to go now, but I'll have a think later this morning for you.

[buildersmate]

Well I'm pleased that you have decided to rethink your assignment from yesterday because I think your original scope would have been really tricky. Not only had you picked a business (Meccano) which is based in France, but one owned by a couple of venture capitalists, one Italian and the other French, about which there is virtually nothing in English to source on the web. Also the toy industry is very specific and small segment. It was proving quite difficult for me.
Now you have gone the other way and set it very broad!

Assuming you mean UK businesses in the last 5 years, a couple of starters for 10 could be:
Economic: change in VAT to 20% impacted all businesses providing goods and services on which VAT is charged. Optional / discretionary goods/service business impacted more (for example, luxury goods).
UK Government response to the banking crisis has strengthened the £ against the Euro. This impacts negatively those businesses that export into Eurozone, our largest export trading zone.

Employment: the minimum wage has been uplifted at least once in the last 5 years.
Employment: Enterprise Zones - you'd have to research this, I'm out of date.
Taxation: Current Government are in the process of reducing the main rate of Corporation Tax.

[factor-fiction]

Buildersmate has pretty much covered this. Other points that spring to mind are:
- changes in employment law making it easier to dismiss (although this is something for the future so maybe outside the scope)
- changes to pensions (retirement ages, introduction of compulsory works pensions, ongoing requirements for companies to underwrite pension schemes to some extent)
- changes to tax- could also add changes to 50% tax band and ongoing increases in fuel duty which put pressures on cost
- planned changes to working tax credit rules and benefits which may affect the supply of labour in certain areas
- all the furore about bankers' bonuses leading to what some might see as political pressure/ interference on senior staff remuneration issues and a possible requirement for more openness on remuneration
- reduction in investment in capital infrastructure projects and withdrawal of some of the funds that were sloshed around some public sector areas in the run up to the election