Monthly Archives: January 2015

VOA clarifies rates for licensed trade, HM Revenue & Customs


Information about how pubs, bars and other licensed premises are valued for non-domestic rates has been published by the Valuation Office Agency (VOA).

According to the VOA, this involves collecting details of rent, trading levels, and the premises’ location, type and services, and using this information to establish a ‘fair maintainable trade’ (FMT) value.

FMT is the value of trading receipts (excluding VAT) that a competent licensee could receive if running the business for one year.

The rateable value (RV) is then calculated by applying a percentage between 0% and 12% to the FMT figure.

Read more about the VOA guidance at:

Having read the valuation process used by the VOA, it would appear to be somewhat out of date and out of touch.

Firstly they base their rents on 2008 figures or dare I say Comparables, which every valuer that I have crossed swords with uses for ease of convenience, by cherry picking vaguely similar pubs within a ten mile radius, serves only to ratchet rates and rents higher at every screw, much favoured by Pub Co’s. READ MORE








Making your Business compliant with current safety laws and requirements

Safesmart -3A

Making your Business compliant with current safety laws and requirements easily?

Safesmart’s answer to the problem is the Smartlog4Hospitality. Our cloud based system is used by hotels, pubs, restaurants, inns and clubs across the UK. Smartlog4Hospitality makes the management of fire and health & safety quick, easy and inexpensive. The Smartlog platform puts all compliance requirements in one place.
The Smartlog4Hospitality provides:

  • Self-monitoring risk assessments for fire, health & safety
  • Automated check and test facilities
  • Reminder escalation facility which notifies users when anything becomes non-compliant
  • Log entry facility for reporting premises issues, accident reporting etc.
  • Dedicated customer service manager available for help, support & advice
  • A variety of comprehensive training courses for unlimited users including;
  1. Fire Awareness
  2. Fire Warden
  3. Basic Food Hygiene
  4. Environmental Awareness
  5. Health & Safety at Work
  6. Display Screen Equipment
  7. Manual Handling
  8. COSHH Awareness
  9. Slips Trips & Falls
  10. Working At Heights Awareness
  11. Safeguarding Refresher
  12. Asbestos Awareness
  • A suite of hospitality related courses including casual dining service, customer service and food & preparation service

Can you be certain your establishment isn’t paying too much to be compliant? READ ON

Government Business Grants, the Election, the Conservatives, this is a must read.


Barrel-dregs 3

Government Business Grants, the Election, the Conservatives, this is a must read.

We have been in discussions with various Government Bodies over the last few weeks for possible Grants to develop a new business that we launched recently.

Having been advised to target the Grant on employing staff and Capital Expenditure, both very much in line with our projected ideas.

The business was launched a few months  ago, with the aim of becoming a members organisation, providing information, help and advice to small businesses, starting with the Leisure/Licensed Industry, which all the Directors have considerable experience in.

We also stressed that any small business experiencing difficulties, even though they are not members, we will give them the benefit of our resources and expertise.

Sounds wonderful, the people that we have spoken to thought it a great concept, we have been doing this for many years with volunteer professionals, we all gave our services free in the hope that we might stem the failure rate in the Pub and Restaurant Industry, without digressing too far. READ ON




Buy-one-get-one free bans work – or do they? by Paul Chase

PropelBuy-one-get-one free bans work – or do they? by Paul Chase

The health lobby are very concerned that things might be getting better in relation to alcohol consumption. By “better” they mean population levels of consumption falling. So they need to assert that if things are getting better, it is because of them, and in particular because of the regulation they have persuaded government to enact.
Thus this week we see articles in the Scottish press and on the BBC website referring to “new data” from Scotland, headlined “Buy-one-get-one-free law leads to drop in Scottish alcohol consumption”. The articles declared that Scots are drinking one million litres less booze a year after a ban on multi-buy and buy-one-get-one-free deals. Researchers found that the “new law” led to a fall in alcohol consumption of “almost 3%”; actually it was a fall of 2.6% according to the University of Glasgow that did the research. Mark Robinson of NHS Scotland claimed: “These findings show the Alcohol Act had the intended impact of reducing alcohol consumption in Scotland by placing restrictions on how alcohol is displayed and promoted.”
Now, the “new law” referred to here was the Alcohol etc. (Scotland) Act 2010, which came into effect in October 2011, and the drop in consumption refers to the year following the ban. Therefore the law is not new and neither is the data. This “news” was a story regurgitated from 2013 by lazy journalists looking for a New Year booze story. But is the claim that the 2010 Act caused this fall in consumption true? According to Dr Jim Lewsey, senior lecturer and co-author of the report, it is: “Similar declines were not observed in England and Wales, where the Alcohol Act does not apply, once the possible impact of other factors, such as changes in income and alcohol prices were taken into account. This provides evidence that the effects were associated with the Act and not some other factor.”
Well, actually alcohol consumption in England and Wales HAS fallen, by 18.9%, from a high of 9.4 litres of undiluted alcohol per person in 2004 to 7.7 litres in 2013. In 2012-13 alcohol consumption in England and Wales fell by 2.1% to its lowest level since 1990 – and without the extra restrictions introduced in Scotland. But if restrictive laws on promotions are the answer to excessive consumption, why does alcohol consumption in Scotland remain 19% higher than in England and Wales?
The NHS Scotland/Glasgow University study is not the only one to examine the impact of the BOGOF ban in Scotland. A study published in January 2014 by the Society for the Study of Addiction concluded: “There was no significant effect of the multi-buy ban in Scotland on volume of alcohol purchased either for the whole population or for individual socio-economic groups. There was also no significant effect on those who were large pre-ban purchasers of alcohol. Most multi-buys were for beer and cider or for wine. The frequency of shopping trips involving beer and cider purchases increased by 9.2% following the ban, while the number of products purchased on each trip decreased by 8.1%. For wine, however, these effects were not significant. Banning multi-buy promotions for alcohol in Scotland did not reduce alcohol purchasing in the short term.”
This was a substantial study involving a total of 22,356 households in Scotland, England and Wales. What is interesting about it is that it suggests that the multi-buy ban did not affect the overall amount of alcohol purchased, but did affect the pattern of purchasing. This is the result of misbegotten social engineering – the main effect of the ban on multi-buy promotions, according to this study, has not been to reduce overall alcohol consumption, but just to increase inconvenience for shoppers while raising the price they paid for the alcohol they were always going to buy anyway.
But the real intention of NHS Scotland running the same story two years in succession was to bang the drum for minimum unit pricing. Whilst the researchers themselves say that the drop of consumption of 2.6% is “statistically insignificant” [even if it happened – PC], they also acknowledge that “there is currently no direct evidence linking multi-buy promotion to alcohol consumption in the off-trade.” So why run such a non-story? NHS Scotland’s Mark Robinson concludes: “Although these effects are welcome [if statistically insignificant – PC] alcohol consumption in Scotland remains and a large proportion is still sold at relatively low prices. There is evidence [which he doesn’t cite – PC] that the positive effects of the Act [the statistically insignificant positive effects – PC] would be enhanced by minimum unit pricing to prevent the sale of cheap, high-strength alcohol.”
So let me see if I have got this exactly right: the welcome effects of a statistically insignificant drop in alcohol consumption arising out of the BOGOF ban, if they happened at all, would be enhanced by minimum pricing which, as proposed in Scotland, has not been tried anywhere in the world and is likely to be rejected by the European Court of Justice as breaching European competition law.
How desperate is that?
Paul Chase is a director of CPL Training and a leading commentator on on-trade health and alcohol policy

Latest News and Interesting Facts from Propel.

Crowdcube raised £35.9m in 2014 – and grew investor community by 57,000 members: Crowdfunding platform Crowdcube has reported it helped 105 businesses raise £35.9 million in funding in 2014. This represents a 246% increase compared to 2013 and means Crowdcube maintains the title of UK’s largest equity crowdfunding site. In 2014, registered investors jumped from 65,000 to approximately 122,000 as investor interest increased. The increase in demand pushed the Exeter-based Crowdcube to grow staffing from 15 to 45 by the end of 2014. Offices were opened in both London and Scotland. Crowdcube stated “the year ended on a high note”, as they were selected by the government supported London Co Investment Fund (LCIF) and are expected to receive £5 million to invest in London-based tech start-ups. “2014 was a pivotal year for Crowdcube,” said Crowdcube co-founder Luke Lang. “We have continued to grow our business faster and deeper than we expected and are leading the market in terms of funds raised and innovative new investment offers such as our Venture Fund and Mini-Bond. But the crowning glory was when the UK Government recognised equity crowdfunding as an effective way to finance small businesses by giving Crowdcube £5m to invest in London’s top start-ups. This not only highlights our reputation as Britain’s number one source of finance for entrepreneurs, but it validates the entire crowdfunding model.” Yesterday, the nine-strong coffee shop chain Taylor Street Baristas, led by Richard Shaer, passed the £1.5m mark in cash raised through its mini-bond on Crowdcube. It was seeking to raise a £1.5m minimum through an 8% yield bond – a total of £1,521,000 has been raised from 426 investors. The offer has another six days left to run. This year, the company’s unaudited accounts show turnover of £3,337,000 from nine shops in the most recent year, with shop pre-central overhead Ebida of £278,000 and actual Ebitda of £110,000, producing an overall loss of £276,000.
Horizons – eating out sales to grow by 2% this year: Trading through the eating out sector is likely to improve further this year, although it’s still a long way off peak 2008 levels, according to foodservice consultancy Horizons. The UK’s restaurants, hotels, quick service dining outlets, cafés, contract caterers and takeaways saw sales improve around 2% during 2014 with similar growth anticipated for 2015. “It won’t be a meteoric rise this year, but sales are likely to see steady growth if consumer confidence continues to improve, prompting a rise in average spend,” said Horizons’ managing director Peter Backman. However, consumer confidence is fragile particularly with current global uncertainties such as the ebola virus, the threat posed by Islamic extremists, the UK’s presence in Europe and the outcome of the general election in May. Such issues could weigh on people’s minds and negatively affect their confidence limiting any projected growth in foodservice sales. In terms of the types of outlets likely to increase their presence in the market, Backman earmarks limited product takeaways such as juice bars, Mexican street food and bakeries and coffee outlets for further growth. These occupy small outlets in high traffic areas and mean that consumers can satisfy their need to buy food when they want, where they want. “We envisage this trend continuing as entrepreneurial operators come up with novel ideas for brands. It is these operators who will bring new food trends to the market by renting small, cost-effective spaces that larger brands can’t,” said Backman. Horizons also envisages a year in which the bigger eating out operators are likely to grow further through acquisition with smaller players the inevitable targets. “The larger players are now at the point where they will start to ask where further growth will come from. The eating out market in some sectors is reaching saturation and overseas expansion is difficult for most, so acquisition through 2015 and into 2016 is the obvious answer. Investors are much keener on the eating out sector than they were and obtaining finance for deals will get easier,” Backman added.

Pub runs for almost 20 years without premises licence: A pub in Port Glasgow, Scotland has been running for almost 20 years without anybody noticing that it did not have a premises licence. The premises licence for The Comet Bar in King Street ceased to exist when the company whose name was on it was dissolved 20 years ago. A transfer of the licence to a new company was due to go through but the paperwork was never completed, Inverclyde’s licensing board was told last week, when the pair who run it, Carol Robertson and her father Donnie McPherson, applied for a temporary occasional licence in order to keep the premises open until a proper premises licence can be obtained. The board was told that the building is owned by Greenock councillor Ciano Rebecchi, who used to run the premises himself. Lawyer Archie Maciver, acting on behalf of Ms Robertson and her father, said: “As far as the technical failings on the company side of things, that was completely without the knowledge of the McPhersons. My understanding, however, is that steps have been taken or are in the process of being taken for a new licence for the premises. This is to allow the premises to re-open.” Police Scotland raised “serious concerns” over a number of incidents, including two alleged serious assaults. However, the occasional licence was unanimously approved by the board’s members.

The Prince’s Countryside Fund allows Pub is The Hub’s move into the Scottish Borders: The Prince’s Countryside Fund has announced a £25,000 grant for Pub is The Hub as part of a £650,000 investment in rural initiatives for 2015. The funding will create a new pilot project for 12 months in the Scottish Borders to identify priority areas and rural service needs with the aim to work with at least eight rural pubs. Then Pub is The Hub will establish an information hub for the whole of Scotland, inviting participation and support from interested regions. John Longden, chief executive for Pub is The Hub, said: “We are thrilled to receive this grant from The Prince’s Countryside Fund as it gives us the opportunity to start some diversification initiatives in Scotland working with the Scottish Borders Council to enhance essential community services.”

An Interesting Case of local infighting

Arc Inspirations founder decries trade-backed licence objections: Martin Wolstencroft, founder of award-winning bar and restaurant operator Arc Inspirations, has decried a trade-backed license objection last week to a move to add an hour to trade at the company’s Pit site in Harrogate. Wolstencroft told Propel: “(Last week) we gained an extra hour on our license in Harrogate for the Pit to sell alcohol to 1.30am on Thursday, Friday and Saturdays. Our solicitor was Paddy Whur from Woods Whur and we won against a solicitor from Poppleston Allen called Jonathan Smith. Jonathan was representing a few local residents but his fee was being paid by two of our competitors – Rift bar, the new Revolution concept and Paul Kinsey an experienced nightclub operator who owns Viper rooms. It was like going back 15 years with trade-backed objections.”

Research shows paying more for all-you-can-eat buffet makes food taste better: Research in the United States has shown that paying more for an all-you-can-eat buffet makes the food taste better. Three researchers conducted a field experiment at an all-you-can-eat buffet to test whether the cost of the buffet affected how much diners enjoyed it. They conducted their research at an Italian all-you-can-eat buffet in New York, where over the course of two weeks 139 participants were offered a flier for an $8 buffet or a $4 buffet. Both had the same food. Those who paid $8 rated the pizza 11% tastier than those who paid $4. Moreover, the $4 group suffered from greater diminishing returns: each additional slice of pizza tasted worse than the $8 group found it. David Just, a professor at Cornell University’s Dyson School of Applied Economics and Management, and one of the study’s authors, said: “People set their expectation of taste partially based on the price, and it becomes a self-fulfilling prophecy, ‘If I didn’t pay much it can’t be that good.’ Moreover, each slice is worse than the last. People really ended up regretting choosing the buffet when it was cheap.”

Market Rent Option (MRO) and Small Brewers with further thoughts.

Beer Pump Handles

Market Rent Option (MRO) and Small Brewers with further thoughts.

Having met a number of small and micro brewers over the last week, it staggers me how few know anything about the MRO and the longer term effect on their business.

Mainly because in their opinion it’s a Pub Co thing and their dealings with Pub Co’s are minimal, because of the restricted access for a variety of reasons to the Pub Co market.

Having explained that all tied/leased pubs that fall within the MRO range and take this option, will be allowed to buy their beers where ever they like, without any interference from the Pub Co’s owning their pubs, effectively giving them true freehouse status.

Over the next five years this opens up the micro and small brewery market enormously, the change in the market will hit the larger brewers because the market as such is finite, unless it creates a move back to drinking in pubs again.

Should this happen the supermarkets will expand their local small brewery stock and price even more aggressively, since they are looking constantly for ways of grabbing a larger market share.

The troubles that some supermarket companies are experiencing may make them limit the amount of different products that they sell, having realised that Aldi and Lidl have experienced a massive surge in market share with limited lines, the ways of these massive companies are not always obvious, so we will have to wait and see which way they move.

For the small brewer with good products and local distribution, the informed opinion is that it will give a massive boost to the locally brewed Real Ales and speciality bottled beers sector.

This may well start moves by large Pub Co’s to buy small brewers to claim that they are Brewers and not Property Companies, their legal eagles will be scouring the small print of the new legislation to find any weak point or legal issue to retain the status quo for as long as possible.

The one serious point that will help, both licensees and brewers will benefit from dealing directly with each other, assuming that all these brewers will give a months credit to the licensees, improving both their cash flows immediately.

The brewers by dealing direct will give single operator discounts where ever possible and not multiple operator discounts and in some cases extended credit terms dictated by some of the large companies.

It may be an aggressive market place initially, if the Market Rent Option should be taken up by many lessees, but like all things it will level off with the two key factors, quality and cost controlling the market.

The switch to the ability to buy where ever the licensee wishes, will be slow because most Pub Co’s will drag their heels.

Enterprise have already thrown all their toys out of the pram because of the possible fine print in the MRO (

But if they endorsed the MRO and realised the potential that it presents to unite the industry and move forward, turning the industry into a career for life, rather than a short term disaster for thousands of naïve and honest people such as it has been.






Fragility of the Western Economy, some thoughts outside the box. (Quantitative Easing)

Fragile World Economy

Fragility of the Western Economy, further thoughts outside the box. (Quantative Easing)

We have suffered a drawn out recession, enormous Government borrowings, putting future generations in debt for many years with electoral promises of booms that will not happen, without describing roads that are breaking up, an NHS system that is suddenly exposed as failing worse than it has been for years and much more.

The EU, the massive weight round our economic necks is teetering on disaster, Greece the shaky, politically precarious country, is causing the EU to panic along with others.

The EU has allegedly been pouring plane loads of quantative easing into the country to keep them in the EU, rather than letting them float with the drachma and suffer whatever problems arise, which there would be many, causing massive cracks in the EU’s skin deep united front.

Every affected country has been printing money individually and achieved absolutely nothing, we are no better off despite the politicians hollow claims, now is the time to get all these countries round the table, stop borrowing money we can’t afford to pay back to the people and companies that caused the initial problem.

Russia is now in serious financial trouble for a variety of reasons and falling oil prices, they represent a serious threat to world stability and cannot be ignored.

There has to be a balanced, united policy of quantative easing between all our trading partners to resolve the economic problems of the Western Economies and others, the politicians that have encouraged massive borrowings will be voted out and their successors will spend five years decrying their predecessors incompetence and achieve absolutely nothing and the same farce will be repeated.

Read on, this was written several years or more ago.

The whole of the western world and a number of aligned  trading partners are all in a deep recession or negative or near negative  growth.

The root cause is lack of money, without money the  whole system closes down with disastrous results for ordinary people, it  doesn’t touch the people with millions, their money has long gone from  any financial risks, most in off shore safe tax havens.

This failure started with the sub prime mortgage swindle in  the USA.

As with any scam it was based on selling millions of  mortgages to people that may not be able to maintain their  payments, but in so doing the property values were escalated with little  consideration to the possibility of rising interest  rates  and that all economies tend to be cyclical, fluctuating between the extremes of  “Boom and Bust”, depending on the controls imposed by their  politicians.

The mortgages were bundled into groups and sold on to banks  and major investment companies worldwide, with a few solid mortgages on the top  and the high risks buried in the paperwork.

Virtually the same scam used to bring the  Lloyds Insurance Industry to its knees, selling on high risk policies with  some solid ones on the top, smart guys in Lloyds taking them on, easy money  until the dross falls out and many Lloyds names lost everything and a number of  underwriters quit the country and retired to sunnier climes where the law could  not reach them.

You would think these City Whizz Kids would learn from  history, sadly “No”, they’ve rediscovered the financial wheel,  pass the parcel and skim something at every handling, it’s easy money until the  parcel falls open and it is the next best thing to worthless.

Panic, more number crunching and suddenly the domino effect  takes place, the big names in the U.S. “Fiddled whilst Rome Burned”, they have  no idea how to handle it and we have the effects shaking all the financial  institutions world wide, banks failing, they in turn have dodged retaining  sufficient cash to cover their loan commitments and they are having to screw  their customers, causing an even greater reduction of available  money.

Without mobility of money we do not function.

We have two further risks, the emerging or Tiger Economies,  lead by China, India, Brazil etc. are justifiably exporting to the West with  very cheap products, far cheaper than we can manufacture them, they are stock  piling the cash with massive trading surpluses.

They are not buying our products in  sufficient quantities to maintain a balance, but occasionally  investing in our key businesses, which in the long term puts them in an even  more dominant position.

The Wests Economy has always been able to contain a new  Tiger Economy, but the Chinese Economy is far greater than any by far, they have  an almost endless source of cheap labour and in turn can undercut almost anything that  the West can produce, we have the knowledge, but we struggle to compete, many  national companies now manufacture in China and the other Tiger Economies for  obvious financial reasons.

In addition they are buying the worlds raw materials at all  costs, to keep their powerhouse operating.

Scrap Cars  in the UK, you could barely give away or paid to remove them, to-day they are £90.00 per ton, where do they go? India or China, they vie for steel.

The amount of the trading surpluses must amount to  Trillions of Euros, Dollars and Pounds, this might be manageable in the long  term with the natural fluctuation of currencies.

Put together with the over valuing of financial packages  and their subsequent failures, we have a massive shortfall of mobile money in  all the Western economies, most of the financial packages had high face values  but were worth nothing, the monetary value was pure fiction.

Yet a number of bankers or investors walked away with  billions to be salted away off shore, never to be seen again, the  whole thing was very akin to a Ponzi Scheme or Pyramid Selling, whatever it was  the result was the same.

I was invited to the RICS (Royal Institution of  Chartered Surveyors) with some other colleagues, to discuss the over renting and  over valuing of pubs, following the changes that had been made to their  Valuation Guidelines some years ago, by the committee at that time, resulting in  the removal of the Chairman.

There are two accepted values for commercial property,  viability or bricks and mortar for an alternative use.

The rental value creates an investment value to the  property for a landlord, it also establishes a rateable value for the Inland  revenue based on the rent.

Under the deposed Chairman the brakes based on viability  were removed, allowing massive increases in rent with no justification and  enhanced freehold values used to raise further funding to hoover up even more  pubs and commercial property, the rents were and are still unsustainable,  including the rates.

The result being thousands of pubs struggling and failing  at a massive rate, empty commercial property,  in every town, with freehold  values that defy belief, with the recession, these values in the main are now worth  40% of their book value.

The Pub Co’s have massive debt mountains, their share  values are minimal and we have one sector of the economy failing steadily,  whereas it has always been a steady rock to rely on.

The RICS (Royal Institution of Chartered Surveyors)  said that they were concerned about the over valuation of commercial  property, the banks were complaining that the mortgages they were holding  exceeded the values of the properties, yet the banks in many cases were  complicit in this valuation, by insisting that to obtain a mortgage the  rent had to be much higher.

The Commercial Agents were delighted to raise rents,  since justification was not needed any more, only a spurious statement that the  demand was there, also a stream of enthusiastic lessees who had no idea  about viability, in many cases the rental levels were dictated by large  corporations whose buying power  and profitability far exceeded individuals.

At the slightest whiff of a recession many commercial  premises are empty and the dizzy valuations are nothing now except a massive  vacuum of theoretical money, major companies, High Street names are  teetering and many have failed, Woolworths being one, to add to the sub  prime and other disasters.

The Government, rightly so insisted on an austerity  programme, probably with little thought as to the true extent and enormity  of the depth of this recession and its ultimate far reaching  effects.

Europe and the Euro are in turmoil, the debts of a number  of EU countries could bring the whole Euro economy to its knees, again there is  insufficient money in circulation and obtaining national loans is getting very  questionable from the usual sources.

The men with the money will not lend to a country in  serious risk of defaulting, in fact the domiciled people with serious money have  moved their money off shore and moved to more stable countries, causing even  more problems for the countries in trouble.

The French have just elected a new president who is  supposedly turning his back on austerity to create jobs, a sure fire vote  winner, get the economy going, how?

Greece have just elected a new leader who is rejecting the  austerity programme and all the constraints, his country had been put under by  the euro Bank and the IMF, there is total confusion in the Greek Government and  another election threatened, what will they do?

Cyprus has joined the casuality list with another Eastern Europen country, they are small almost insignificant, but the shockwaves could destroy the Euro, the Eurozone is like a leaky balloon, every hole is patched to be replaced by another tear opening like a ripe banana, the egotistical commanders of the Eurozone have absolutely no idea what to do, the farce goes on.

Euros are being withdrawn from Greek banks,  causing the banks to be at serious risk, the opinion is that Greece  will be forced out of the Euro and revert to the Drachma, which will be  dramatically devalued, making imports prohibitive, their export market and  manufacturing is minimal, if any have survived the austerity programme, their  mainstay has always been tourism and olive oil, this may be a seasonal  saviour with a low value to the Drachma, but the opinion is that there will be  serious civil unrest for some considerable time and not a place for foreign  tourists.

Greece will not only have the logistical problem of  printing trillions of Drachma in a very short space of time, this may not be  possible without foreign assistance.

The Domino effect of this fall out will shake Spain,  Portugal and Italy.

The obvious thing is to print more money, the old school  say that it will devalue the currency of the country doing it, absolutely right,  but theses countries have no option, they have to get money circulating, Spain,  Italy and Portugal are all teetering, the Irish are on an austerity programme  that many Irish feel is destroying their living standards.

In fact the old yardstick was that you could not have any  more money in circulation than your gold reserves, Gordon Brown sold our gold  reserves at a fraction of the gold value now, not a good move by a  Chancellor of the Exchequer and subsequent Prime Minister.

However, Quantitative Easing is being introduced,  another name for printing money, we desperately need the money in the economy,  but doing it individually will be a financial disaster.

The devaluation of a countries currency will make  its exports cheap, if they can avoid importing and become almost totally self  contained, they could win, but again a big question mark.

Every country that has been seriously damaged by lack of  money, could or should work together and collectively print sufficient money and inject  it into all their individual economies, it has to be done collectively, not  just Europe and the UK, the USA, Japan and any other of our long term trading  partners who are suffering.

The collective result to our individual currencies will  hardly be noticeable or even negligible, the only ones to suffer will be the  likes of China, India, Brazil etc. who have, in some cases, massive trading  surpluses with us.

Their currencies may well go up, but to keep trading with  us they will have to devalue or accept that our manufacturing, as it is, will  start to become competitive, whereas previously we could not  compete.

The very serious problem that exists with countries  with large trading surpluses is that they are in a strong position to take over  our ailing major companies and in many cases move the manufacturing to their own  countries, putting an already fragile economy at greater risk, or our major  corporations are no longer under our control.

If every affected country borrows more money individually  as a country to combat the recession, the amounts needed are beyond the IMF and  other sources, the payback period will in all probability be forty years, a  massive debt to leave our children and grandchildren, for what reason, a number  of business sharks and banks lost billions of theoretical money, a large amount  in real terms was vastly over valued, a lot of people skimmed the real money  away in off shore accounts for tax avoidance, with no consideration for the  damage to their countries real economy.

Or do we go cap in hand to China and all the other Tiger  Economies saying please can we borrow our money back to pay our bills, a very  dangerous strategy, which leaves all the Western Economies in a  very precarious situation with that sort of dependence for forty years  plus.

At the end of the second World War, the German economy had  nothing and they gave every citizen so many marks to get them and the economy  going again, we need to consider this solution now, not individually but  collectively with all the other countries worldwide in trouble.

The Germans have been feeding trillions of Euros into the  Easy German economy with spectacular success, the East Germans standard of  living has gone up dramatically, whilst the West German standards of living have  remained static since unification.

Which surely indicates that a collective controlled  quantitative easing gets an economy going and austerity will and does create long  term limitations in a countries development.

Have the Germans forgotten the massive quantitative easing at  the end of the war to get their economy going, surely the theoretical  quantitative easing of East Germany by the donations made by West  Germany, it may not be printed money, but money donated to an economy with  little or no money of value amounts to the same.

The Germans have a terrific work ethic towards their  countries common good, which barely exists in many of the Southern Euro  Countries, which makes some of them intolerant to their short  comings.

The Euro countries are in trouble because of the scramble  to get the Euro as a common currency, ignoring basic fiscal controls on  countries where taxation avoidance was and is a game played by all.

These countries have to be separated from the Euro, until  they totally conform to a common fiscal policy for Euro using companies, many  will revert to their old currencies given the opportunity.

The possible solution, which many conventional thinkers  will argue as inflationary, but if carried out by all the affected countries,  and there are many, need not be inflationary if done collectively is a massive  co-ordinated Quantitative Easing, sufficient money has to be distributed  to the population to get spending going over the next five years and sufficient  money produced to allow the Governments to substantially pay off their national  debts.

The sums involved are eye watering, but in terms of money  extracted from the system by trading excesses and the fictional over valuing of  what is now non existent money and removed money to off shore tax havens, these  sums are equally eye watering.

The Government debt for every individual is supposedly  approaching £20K, this possibly equates to £50K for every working person and  retired person in the UK, excluding their personal debts, credit cards,  mortgages, overdrafts  etc.

Banks are charging 19% on authorised overdrafts, small  businesses are being forced to use credit cards to finance their  businesses, if this continues we will have very few developing businesses and  more substantial companies will be going bust, banks are hoovering up money  at every opportunity with scant regard for their customers.

Government prudence was a correct approach, but with so  many external influences and other fragile economies for whatever reason, it  needs to step back from conventional thinking.

A possible solution, give every  working, genuine UK citizen say £20K, pensioners £20K immediately, the  working population £4K per annum for five years, long term unemployed will  qualify after having a job for six months, short term unemployed will qualify as  working. (The figure now is possibly as high as £30K)

This money can only be spent on UK purchases and  investments, it cannot be invested outside the country, though this may be too  hard to enforce, also it only applies to genuine UK citizens, any foreign  nationals will have to return to their countries of origin to qualify from their  own country.

The reason that pensioners should qualify immediately for  the whole sum, many are prudent, a substantial amount will go into savings  and hopefully get the banks lending sensibly, they may help young people get on  the housing ladder etc., but it would give in the main a balanced injection into  the economy and make their own remaining years easier, it will also help with  retirement home costs, another spiralling issue.

The £4K per annum will help working people and boost the  economy immediately.

You might ask why not give tax concessions, tax concessions  do put money into the economy, but they take a long time to filter through, we  need the circulation of real money, too much has gone out of too many  countries economies creating a very fragile bubble that will burst with  disastrous consequences.

The Government will provide a similar or suitable sum  to write off against their borrowings, there has to be a unilateral  agreement with all the other affected countries to take similar action to boost  their economies and reduce the government debt, the IMF and the European  Bank will have the financial pressure removed from them and  sufficient funds to steer any other financial disasters back on  track..

The handing of money to working and retired people could be  handled very simply by the use of a Government Credit Card, there will be some  cases of fraud, but whatever is done there will be abusers.

If we collectively borrow money we create stagnant living  standards for years  with severe austerity for countries that have a less  than a great worth ethic, which many have.

The difference of injecting borrowed money into the economy, is that it becomes a commitment for 40 years and very much at the risk of increasing interest rates, quantitative easing done collectively would be balanced, feeding it to the banks has been a disaster and achieved absolutely nothing, Germany enjoyed and prospered with this method, though their memory lapse would seem convenient.

The Germans lead the Euro community, but if the Euro fails,  which it looks to be at serious risk, the German export market and economy will  also be at serious risk.

It requires thinking outside the conventional  box.

The Tiger Economies may well have to revalue their  currencies, the people with offshore accounts could come under IRS scrutiny,  should they wish to invest in participating countries.

The alternatives are the Chinese etc. again hoovering up  all our major companies, future generations being saddled with massive debts for  years, because of trading surpluses and crass stupidity in the financial and  property markets, at the moment the UK debt is spiralling almost out of control  as the economy falters and more people become unemployed.

The Prime Minister is calling on Europe for drastic  measures, we need to correct the problems and then analyse the causes and try  and ensure it does not happen again, it will of course, money men have  short memories, Ponzi Schemes, Pyramid Selling crop up all too often, call it  what you may, it will have another name, but the result will be the same to a  greater or lesser degree.

The USA is talking about minting trillion dollar coins to boost the economy, please do it in conjunction with the rest of the struggling economies.

If you agree with these thoughts email a copy to the Prime  Minister, Chancellor of the Exchequer or your local MP, whichever country you  reside in.

Note:- Since writing this article every country with very few exceptions have been printing money (Quantitative Easing), many denying this fact, the press is now full of this information. It’s a great pity that they did not meet together and agree an international combined strategy, to save all these massive borrowings from many dubious original sources, tying up individual countries debt mountain for many years.

George Osbourne is promising a long period of economic stagnation, for what, to pass massive debts on to our children’s, children because some banking spivs blew a hole through the financial system.

Think about it logically, who is loaning the money, possibly the key players who robbed the system with their banking colleagues.