When the time came to settle the bill, the waiter bought the card machine over and processed the payment but, just as he was tearing off the receipt for me, he lost his grip on my card, which fell to the deck and right through the gap between two planks.
The waiter was incredibly apologetic but I told him not to worry; I could just order a new card. However, he wasn’t satisfied with this and used the torch on his ‘phone to peer through the decking. There was my card, about six inches below the decking. This served only to confirm to me that the card was irretrievably lost.
Our determined waiter did not agree, however, and disappeared for a minute or two before returning with two long knives and some blu-tack. And, after three or four minutes effort - accompanied by a little muttered cursing - the waiter passed me back my card.
I’m sure you’ll agree that this young man displayed great conscientiousness here: I’d told him it didn’t matter but he took responsibility for the situation and made every effort to return my card to me, successfully as it turned out.
I’m telling you this to illustrate my argument that any business is only as good as its staff. Your restaurant might serve amazing food but a surly waiting staff will drive away your customers. Your product might be amazing but if your warehouse staff are careless with it or don’t see orders out of the door on time, then people will stop buying from you and go elsewhere. I’m sure you can think of many, many examples for yourself. The bottom line is that your staff is the vital component of your business. (Unless, of course, you are in a monopoly, which might explain a thing or two about BT.)
And since this is a matter of common sense, really, I was very surprised to receive Cumbria Chamber of Commerce’s response to the budget. Sure, I expected it to be business focused, but I also expected a little more insight into the fact that it is the employees that make businesses successful.
Below, I have taken sections of their response to comment on but you can find the entire response at the bottom of this post.
National Living Wage/Minimum Wage
"This, combined with the welfare changes, shows a real move from welfare payments to payments for economic activity - increasing the motivation to work and rewarding work."
There’s a non sequitur here or at the very least an assumption that people who are unemployed need to be coerced into working. Removing people’s benefits does not magically present them with jobs for which they are qualified or able to do. According to the IFS, thirteen million families will be, on average, £280 worse off under the new budget. Nowhere near all of those people are unemployed, so how does cutting their benefits increase their motivation to work?
And how many companies want staff who are distracted and stressed by government imposed financial hardship?
"There is of course a real concern about the cost to businesses, and particularly SMEs. What makes it more palatable to business are the changes to Employers' National Insurance and to Corporation Tax."
Firstly, Rob Johnston illustrates in his second sentence why the concern is not real at all. The real concern should be why are so many businesses not paying their staff a living wage already. If your business can't afford to pay people a living wage then, frankly, you don’t really have a business. Not a proper one, anyway.
"It's difficult to take a global position on the impact as the combination of changes will have differing impacts on different businesses. And there is a need to follow on evidence based approach and minimise the impact on smaller businesses in particular."
I have no idea what that paragraph means. Onwards, then...
"It is a concern that there's an acknowledgement of 60,000 jobs expected to go, possibly mitigated to an extent by NI and taxation changes. While many more jobs are expected to be created these won't be in the same businesses, and businesses may well be lost, while new jobs created may not be in the same geographic areas or available to those losing out. A poorly paid job is still a job after all."
There you have it, a budget for working people that acknowledges losses of 60,000 jobs yet thinks that reducing benefits will incentivise people to find work. It's just bloody nonsense.
And, finally, “A poorly paid job is a still a job after all”. So, suck it up, poor people; be grateful for the job you have, even if you aren't being paid properly for doing it.
Apprenticeship Levy
"This is good news, with businesses positively rewarded for employing apprentices. The challenge is how the money will flow - which we have yet to see. It's to be hoped that there will not be an over bureaucratic system that doesn't work for smaller businesses."
Now this is absolutely clear cut evidence of the government’s smoke and mirrors approach to statistics. If you need to incentivise companies to take on apprentices, then there is no genuine requirement for those apprentices. This simply massages employment figures.
Corporation Tax
"Again this is good news for business. It will mean more money left in the business to make the business flow and to invest and sends out a tremendous message to the world that Britain is open for business."
I’ve two things to say about this. Firstly, if the government want to do anything useful related to corporation tax, perhaps they could start by collecting the £120 billion of unpaid corporation tax (and then we wouldn't need to cut welfare by £12 billion).
Secondly, telling businesses that Britain is a place where you don’t have to pay much tax is not the same as Britain being open for business.
One further comment I’d make is that both the chamber and the chancellor seem have to missed a key point about reinvigorating the economy here. One thing that we can say for certain is that people on lower incomes – say the bottom 50% of earners – spend their money. That might be on simply making ends meet, buying clothes and food, paying their bills, or perhaps, for those earning a bit more, on holidays, cars and home improvements, eating out and buying luxury goods. What they don’t have the scope to do is put large amounts of money into ISAs, trust funds, and high interest accounts. So, if you want to grow your economy, don’t take money away from those who will spend it!
Rob Johnston blithely states that “This Budget has certainly shifted the agenda with a balance of politics and economics that provides a stimulus to the economy while making much needed changes to the welfare system and continuing to tackle the deficit”.
I would challenge him on all three points there: I don’t believe that this does provide a stimulus to the economy in that it takes money away from those most likely to spend it. I don’t agree that the changes to the welfare system are “much needed” and I’m irritated by this unfounded assertion. And finally, whilst we might be continuing to tackle the deficit, Osborne is doing it in pretty much the least effectual manner possible.
This budget was callous, as was Rob Johnston’s response. All economic arguments to one side, we should be taking care of those who need benefits. Remember, a high percentage of those people receiving tax credits, for example, are in families where at least one adult is in full time employment.
If we want successful businesses and a growing economy, then it makes sense for everyone to take good care of employees, whether it’s through a decent living wage – and not what Osborne counts as a living wage – or through providing benefits.
Buying into the rightwing narrative that is constantly played out in the press of scroungers and layabouts, and a need to cut welfare, is damaging to both our economy and our social fabric. Your company will not be successful if it is staffed by people who are distracted by fundamental concerns about how they are to feed and clothe their families.
Frankly, I'm appalled by how the Chamber has slavishly bought into the government’s narrative. I wouldn't pay money to any right wing organisation, so now I must question why I'm paying membership to Cumbria’s chamber of commerce.
The full text of the response
"This Budget has certainly shifted the agenda with a balance of politics and economics that provides a stimulus to the economy while making much needed changes to the welfare system and continuing to tackle the deficit.
Businesses will welcome the new permanent Annual Investment Allowance, further Corporation Tax reductions and lower National Insurance, as well as commitments to childcare and higher education that help them employ Britain's best."
Commenting on specific measures he adds:
National Living Wage/Minimum Wage
"This, combined with the welfare changes, shows a real move from welfare payments to payments for economic activity - increasing the motivation to work and rewarding work.
There is of course a real concern about the cost to businesses, and particularly SMEs. What makes it more palatable to business are the changes to Employers' National Insurance and to Corporation Tax.
It's difficult to take a global position on the impact as the combination of changes will have differing impacts on different businesses. And there is a need to follow on evidence based approach and minimise the impact on smaller businesses in particular.
It is a concern that there's an acknowledgement of 60,000 jobs expected to go, possibly mitigated to an extent by NI and taxation changes. While many more jobs are expected to be created these won't be in the same businesses, and businesses may well be lost, while new jobs created may not be in the same geographic areas or available to those losing out. A poorly paid job is still a job after all."
Apprenticeship Levy
"This is good news, with businesses positively rewarded for employing apprentices. The challenge is how the money will flow - which we have yet to see. It's to be hoped that there will not be an over bureaucratic system that doesn't work for smaller businesses."
Northern Powerhouse, Devolution of Powers and Enterprise Zones
"It will be interesting to find out more about the plans with Cornwall and how Cumbria could potentially benefit from similar moves.
We note the reference to the new enterprise zones and hope to see announcement of an Enterprise Zone for Carlisle soon!"
Annual Investment Allowance
"Making the £200k allowance permanent is really good news which should have a real impact on investment and productivity."
Corporation Tax
"Again this is good news for business. It will mean more money left in the business to make the business flow and to invest and sends out a tremendous message to the world that Britain is open for business."
Road Tax
"It's good to see that this is finally being tackled, restructuring an income source that was diminishing, and to see the commitment to spending that income on roads. We need to make sure that we see enough of this spend coming through here in Cumbria."
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