Wednesday, October 27, 2010

The Foolishness Of Politicians

So, let me get this right. We're cutting around a million jobs in the UK based on cutbacks in the public sector.

But the private sector will miraculously take up the slack and employ all of these people and more (if you believe that we will have GDP growth).

So, as someone who has created companies and thousands of jobs and paid tens of millions in taxes down the years, I think I'm well qualified to comment on this.

Not on your nellie.

First of all, where is the work going to come from ? The public sector is a huge source of revenue to everyone from web agencies to video production companies (although I personally steer clear of the sector as much as possible) and this will have a knock on effect all around.

Secondly, our work is now going to cost 2.5% more thanks to a VAT hike.

And employing people is now going to cost 3% more thanks to the ridiculous new pension regime that was announced today, all of this brought to you by the party currently effectively running the country thanks to their 'tax on jobs' haranguing of the Labour party.

I've gone from running companies employing hundreds of people to running a virtual company that does not directly employ anyone, and many of my companies use resources from all over the world - I have 'employees' in the US, India, Cyprus, Russia and Poland working for TV Everywhere companies and I don't have to worry about VAT, pensions, PAYE or NI, and I ask myself: why the heck would you employ anyone in the UK, even as a UK business ?

Add to this the swingeing taxes now imposed on entrepreneurs and there is absolutely no incentive to build a business in the UK. The effective tax on enterprise in this country now is well over 70% if you factor in employee taxes, pension taxes, income taxes, NI, capital and dividend gains and VAT.

Three years ago I swore that I would never directly employ anyone ever again. Now I think it's mad for anyone to employ anyone else.

We are heading for a serious fall....