Tag Archives: elections

Save the Bankers v Save the Pandas – now there’s a choice!

This Sunday has not started well. Beautiful crisp morning but pretty damn cold – the beginning of the ice box scenario for many households who can’t afford heating. Nevertheless, Paul and I were up early and ready to go out to our local car boot which has, over the last few years, become like a weekly social event – regular stall holders with irregular wares and prices ranging from 20p to a couple of pounds, regular visitors chatting away with each other, lots of dogs (and their proud owners) and so multi cultural. I often think the car boot sale we go to, which is held in a farmers field in Cambridgeshire, is one of the best and most amicable examples of multi-cultural Britain.

Unfortunately today’s visit did not go to plan as our elderly car decided it does not want to live through another winter – and refused to start. Hey ho, won’t be the first time a car has died on us over the last few years, so I decided to take another pleasant option – read the papers on line, tweet a bit and listen to the Archers.

It was all going really well until I read an article on the Conservative home site called ‘Save the Bankers’ penned by an A level student. Now don’t get me wrong, everyone is entitled to their view and it’s always good to see young people voicing their opinions. The author even made some good points – especially the point that ‘save the bankers’ is unlikely to be as popular a campaign as ‘save the pandas.’ Yep, I’d say it’s a non starter. And he, Joe, also made the valid point that thousands of people are employed in banks – the figure of 3.8% of the population was muted although I haven’t checked that figure. Obviously it’s a big sector – obviously it employs many ordinary decent people – and even makes many of them redundant and, (I don’t know if Joe knows this) sometimes by the most ungracious of methods, like please all attend a meeting in the car park – you’re fired and don’t go back into the building.

However, the overall tone of the article was to praise the contribution banks and bankers make to society; to criticise those who insist banks are the root of all evil and; to have a pop at the Labour party for their manifesto in relation to bankers’ bonuses. With the arrogance of youth, the author insists we must rise above the ridiculous myth that banks or the City are responsible for society’s ills and we must instead take collective responsibility for economic failures.

Fair enough – not many 18 year old’s will have lost their business because of asset stripping or swaps. They probably won’t have been affected by LIBOR or even PPI at that age. They won’t know how the insolvency laws have been abused and manipulated over the years so that solvent companies are pushed into administration by banks who then acquire those assets for peanuts. So they won’t know how many SMEs have been destroyed by deliberate and immoral policy implemented to benefit an elite minority at a huge cost to the majority. And if you don’t research that side of the coin – you won’t know and you won’t include any of it in your article.

But my problem is not about the content of the article – in a world where social media means everyone can share their views across the internet, why shouldn’t Joe share his? And if he had done so on his own blog, I wouldn’t have batted an eyelid (I probably wouldn’t have even seen it). What I found worrying was that the Conservative party gave this blog/article a huge platform on their home site and in doing so, they’ve used an A level student to promote the bizarre propaganda that banks are fundamentally good, we should recognise their contribution to society, embrace the ambitious nature of bankers and allow them to thrive without the constraints of “iniquitous” legislation being imposed by regulators. Bonkers!!!

There are no doubt many good bankers out there Joe. Every sector has good people – personally I always had a bit of a soft spot for Tony Soprano. Some of my good friends come from the financial sector – although most of those particular friends are now better known as ‘whistleblowers.’ Sadly, there can’t be many good main stream banks in the UK – because unlike other European countries, we only have a handful of banks and even if 50% of them were good – that could still only be a few rather than many. In my experience and after 7 years of research, I would say the majority of the big banks have repeatedly demonstrated utter contempt for society and its laws – spurred on by successive Governments.

I have no idea who to vote for next year – almost certainly it will be the party which demonstrates any inclination to support the 4.9M SMEs in the UK who employ 25M people – if such a party exists. Who knows, that could even turn out to be the Conservative party. Like many SME owners, I would just like to see a Government that redresses the balance of the many and varied issues that have caused SMEs to bat on a totally uneven playing field – and banking is only one of the those issues. All the same, while I respect everyone’s views, I feel slightly apprehensive about any political party that gets teenagers to preach on the subject of how good our financial sector is. Poor etiquette Dave. Unless of course you are also going to let someone else have the same platform to put the other side of the argument? I can think of quite a few volunteers.

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To SME friends on twitter

Dear David Cameron, Ed Milliband, Nick Clegg and other party leaders,

In the run up to the next election the owners and shareholders of 10s of 1000’s of SMEs who have been systemically abused by banks are wondering who to vote for and if there is any point? Over the last few years it seems there has been little difference in how the major parties have pandered to the banks and Corporates at the expense of the millions of small businesses in Britain. And while the present Government insists the economy is growing, the situation of banks refusing to fund SMEs while continuing to close them down, steal their assets and knowingly defraud them, continues unabated.

Not only do the banks continue with their unethical conduct to SMEs, we can assure you the majority of business owners find the regulators to be at best ineffectual and at worst biased towards the big banks. In all honesty we have no idea which party, if any, would be prepared to change that unethical status quo and support British businesses.

The following statistics come from BIS (beginning of 2013)

  • There were an estimated 4.9 million businesses in the UK which employed 24.3 million people, and had a combined turnover of £3,300 billion

  • SMEs* accounted for 99.9 per cent of all private sector businesses in the UK, 59.3 per cent of private sector employment and 48.1 per cent of private sector turnover

  • SMEs employed 14.4 million people and had a combined turnover of £1,600 billion

  • Small businesses** alone accounted for 47 per cent of private sector employment and 33.1 per cent of turnover

  • Of all businesses, 62.6 per cent (3.7 million) were sole proprietorships, 28.5 per cent (1.4 million) were companies and 8.9 per cent (434,000) partnerships

  • There were 891,000 businesses operating in the construction sector – nearly a fifth of all businesses

  • In the financial and insurance sector, only 27.5 per cent of employment was in SMEs. However, in the agriculture, forestry and fishing sector virtually all employment (95.4 per cent) was in SMEs

  • Only 22.5 per cent of private sector turnover was in the arts, entertainment and recreation activities, while 92.7 per cent was in the agriculture, forestry and fishing sector

  • With 841,000 private sector business, London had more firms than any other region in the UK. The south east had the second largest number of businesses with 791,000. Together these regions account for almost a third of all firm

24.3 million people equals a lot of votes and that’s without taking into account the millions of individuals damaged by the so called ‘credit crunch’ when banks were given billions of pounds from the public coffers with no reference to the public. That is a statement of fact – not a political point and many of us see little difference in the conduct of the last Labour Government to the present coalition Government. The banks and bankers get richer while the society and the small businesses that are such an essential part of the economy are continually ignored or deliberately impoverished.

We would like to know if any of the political parties are genuinely intending to support SMEs in the next term of Government? We’d like to know if that support is included, or proposed to be included, in any manifesto? And we would like to know what guarantees will be given that any promises made in the run up to the election, will be upheld? In the previous election we were all led to believe miscreant bankers would be individually held to account and bankers would not be handsomely rewarded for causing the austerity most of us live with. It has not happened and, if anything, our banks feel empowered to act immorally and even criminally in the knowledge any penalty will be levied against the shareholders by fines from the regulators. It started with new Labour and this situation has been proliferated by the coalition.

We would be grateful if anyone can clarify what we should expect from the next Government and whether any party is intending to support SMEs. The situation for many SMEs in this Country is catastrophic. We want change – we want to know who is prepared to instigate that change – we want to know where our millions of votes should go.

Yours sincerely

SME Alliance.