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British businesses have survived the recession by stagnating and cutting pay.

It seems that for the past four years British businesses have struggled on, producing largely the same things with the same labour force. Where they have gained is by shelving plans to buy new equipment and paying people less – either by reducing their wages in real terms or by reducing their hours. This policy might have worked in the short term, but it bodes badly for the future. Last week, George Osborne was confronted by a forecast that the public finances will be £20bn shy of his last estimate, largely because low productivity will slow the recovery and rob him of tax receipts.

http://www.theguardian.com/business/2014/mar/09/economy-recovering-productivity-british-business-recession-pay-growth

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  • Survived is the word..

  • I find that the influx of immigrants has had a grater effect on our businesses than any recession. People are opting for cheap rather than quality, thus putting the pressure on small businesses. I am quoting so low that I would be on less than minimum wage, but still not getting the work. Another thing is, If David Cameron wants to help small business, then he could help reduce the cost of advertising for small companies. A one man outfit still has to pay Yell.com or Google the same as Wimpey or any other multi national company. Maybe we could write to Mr. Cameron and produce a petition ? I have written, but yet to have a reply.

  • Advertising is a market? it should be nothing to do with government regulation to set prices, thats abit like the public asking the govt to regulate gardeners wages!

    Where are you based out of curriosity eric, as I dont see the same issues as you in my area?

  • Hi David,
    I was just stating that David Cameron said that he would help small businesses and help with the cost of advertising would be a good start. I am in Coventry. Not exactly a landscapers paradise.

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    Other than something like a £500 allowance for advertising and marketing for business that had a turnover off less than £50k or something I don't see how it could be feasibly done. Even then getting an allowance 1/100 of your turnover is pretty small.

  • Fair, I am in Leeds - I know that up north immigration has been less relative to the population so cant comment beyond that, as for advertising _ I still dont think the govt should help, or help on anything bar reducing taxes and ensuring that everyone is on a level playing field, by a) in your case tackling obvious tax avoiding migrants, b) ensuring everyone is correctly licenced.

    How do you advertise if you dont mind me asking? Their are many ways and kereping the cost down has always been my aim - maximum exposure, maximum conversion for minimum £ invested, happy to discuss, as advertising is very much an art as opposed to an investment - which is why my opinion is that the cost is really down to your business and not the govt to deal with, obisouly within the contraints of local market.

    Eric Barker said:

    Hi David,
    I was just stating that David Cameron said that he would help small businesses and help with the cost of advertising would be a good start. I am in Coventry. Not exactly a landscapers paradise.

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