What is the impact of everyone in an entire economy
'waiting to see'?

Alistair Darling was always going to come under fire for his pre-budget report last week. However, one interesting comment that he made during the Andrew Marr Show prior to his announcement stood out:

"I'm not doing a spending review now because it would be wrong because you know there's still a lot of uncertainty around. I've been saying for some time now that there's still the risk that something somewhere in the world could go wrong and unsettle things."

Whether this was also a fudged argument in anticipation of the General Election is questionable, but the Chancellor has managed to hit the mood button of the UK on the head - 'waiting to see' has become the dominant mantra for businesses, consumers and public services.

What is the impact of such inertia on business? In a fragmented industry like hospitality, there have been examples of both success and failure in 2009, though many leaders acknowledge the lack of finance options are proving to be an ongoing concern. Will an increasingly stagnant climate prove to be a disincentive, and will we see an exodus of companies and individuals from the UK?

And the reality is that everyone knows the next two to three years will be a tough slog and whichever party ends up in power, they face the rollout of higher taxes and huge public debt, so is the General Election actually relevant?

The real sting in the tail is whether this ongoing limbo-land stalls the UK's progress out of recession even further.

Do you have any comments on this topic? We would like to hear your views.
Please email: stinginthetail@epmagazine.co.uk

Here are some comments received from last week's theme of
unethical trading:

"I just wanted to comment that whilst I agree that principles might have to be sacrificed due to the bloody economic climate, ethics should not. It's immoral to continue to take credit from your suppliers if you know you are trading insolvently and/or planning a pre-pack."

"Having set up a small business this year it has given me a first hand and very revealing insight into how people are doing business in these turbulent times. Whilst business for me has been good in the first trading year, the biggest challenge to date (bigger even than securing business) has been ensuring prompt payment from clients. A crucial part of any business as we all know 'cash is king' and many 'profitable' businesses have failed through poor cash flow. I have managed this aspect of the business through much time, energy and tenacity in keeping customers to agreed terms. Terms that have been extended to 45 and even 60 days without negotiation, very much a dictate. Add to this administration errors on the part of the client (we can not afford to make our own mistakes as this gives a reason to delay payment further!) and we have in instances waited 3-4 months for invoices to be paid."

"It is a constant battle to survive this year and we are not in a fancy position by any measure However many of my suppliers have been with me for over sixteen years and it is our responsibility to make sure that they do not get jilted. After all it is also they who help us keep our businesses afloat as a result of their stretching their credit limits. Letting them down is not a consideration in my eyes. Yes pre-packing is nice to give us a little lift we do deserve at times but who do you select and how?"

Didn't read last weeks sting in the tail? Read it here