Comments on: Investment decline continues but Conservatives would cut capital allowances

By: Osborne's policies are no April Fool | Left Foot Forward

Osborne's policies are no April Fool | Left Foot Forward — Tue, 09 Feb 2010 09:33:41 +0000

[...] life plant and machinery capital allowances to 6 per cent. With business investment continuing to fall off a cliff, it is not surprising that the manufacturers’ lobby group, EEF, say: “the importance of [...]

By: Vidal Consulting

Vidal Consulting — Tue, 24 Nov 2009 20:56:35 +0000

Investment decline continues but Conservatives would cut capital …: David Cameron, as part of his plans to fu.. http://bit.ly/8mbfL4

By: Nelson Pang

Nelson Pang — Tue, 24 Nov 2009 16:18:24 +0000

Nelson Pang read, Investment decline continues but Conservatives would cut capital … http://bit.ly/8hwI2k

By: Roger

Roger — Tue, 24 Nov 2009 11:18:17 +0000

The key question is whether we are in what Richard Koo has described as ‘a balance sheet recession’ like that in Japan from 1990-2005.

If we are companies main interest is not going to be investment but paying down their debts.

Problem is that in a balance sheet recession govt cannot do very much more than damage control – Keynesian measures are not useless in that they prevent a much deeper collapse but they will not restore pre-recession growth rates until company balance sheets have been largely cleared of debt – and as in Japan this could take a decade or more.

In that context fiddling with corporation tax and its allowances is going to make very little difference.

By: Jason Prince

Jason Prince — Tue, 24 Nov 2009 11:06:14 +0000

RT @leftfootfwd: Investment decline continues but Conservative capital allowances cuts would harm manufacturing http://bit.ly/4FjqiI