Boutique Capital

Fact: UK Bank base rate will be reducing. The experts are unanimous on this point. Questions: 1) What exactly were the risks that the BoE considered non-negotiable in regard to reducing the base rate by 0.25% this month? 2) The headline inflation rate has substantially reduced, but the economic cost has been to drive the country to the brink of recession, is this truly considered acceptable? 3) A substantial number of workers are dealing with the cost of living crisis and huge problems in their own industries. The construction industry in particular has recorded a record number of insolvencies. This is causing growing mental health issues relating to anxiety and financial stress. Why is this considered an acceptable price to pay to limit inflation? 4) Is the Bank of England gathering of the MPC presently little more than a ego driven brinkmanship excercise? The following is a statement from the Bank of England made about the time they started hiking interest rates: “……We started to put up interest rates. If we had raised rates much earlier than that we would have been doing it at a time when our economy was very weak, and the future of millions of people’s jobs was uncertain. We knew it would have been a bad idea…” If the sentiment conveyed above had any semblance of truth attached, can I suggest it was a very bad idea to maintain the current 5.25% base rate last Thursday? #economy #finance #construction #BankofEngland #MPC #crisis #banking #inflation #economists #GDP

Trump aside, what is happening with sustainability in property development? What's it going to take to drive sustainability in UK construction? Can the team at Boutique Capital actively and positively encourage the property developers to focus on being ‘early adopters’ with growing sustainable practices? I invite you to listen to Alison Proctor our Head of Development for Boutique in this week’s ‘One Step Ahead Radio’ hosted by Sasja Beslik . Alison shares her story from being part of a problem to part of the solution. I hope you find the discussion insightful. #construction #development #finance #ESG https://lnkd.in/eXDURf3H

Increase in Government Borrowing: Bleak Economic Outlook? The downward spiral into financial chaos remains. With the bleak outlook for the UK economy becoming firmly established. Today, as we read the financial news, many media and expert comments are little more than tame statements of the obvious. The most critical remarks regarding Rachel Reeves was “UK’s Reeves under pressure” and “Setback for Rachel Reeves”. I doubt she is particularly nervous with such feeble words being used to describe her lack of efficacy as Chancellor. Did anyone truly believe that government borrowing would be anything other than higher? The figures released today represent the third-highest financial year-to-February borrowing since records began in 1993. If we’ve learned anything these past few months since the disastrous autumn budget, it’s to brace ourselves for a steady stream of failing financial indicators followed by nonsensical government announcements. Remembering the damaging tax hikes have yet to be implemented. Keir Starmer will undoubtedly continue to blame the previous Conservative administration for his broken pledges, all while touting that growth is Labour’s “defining mission.” Reeves will, of course, point to that elusive £22 billion “Black Hole,” but don’t worry—she has assured us she’s going further and faster to “kick start” the economy. … Kick indeed, as she now swings her boots at making swingeing benefits cuts for the disabled. Despite major criticism, according to Starmer there is nothing unprincipled about the huge benefits cuts for the disabled. He has defended them, claiming “The benefits cuts will save UK billions per year, and enable people to get back to work”. Phew! There was I thinking this is nothing but an arrogant, ill-conceived move which can only be described as ‘immoral'. Let’s not overlook the anonymous treasury spokesperson, likely to chime in with the usual rhetoric: “We have delivered once-in-a-parliament policies to wipe the slate clean and provide the stability businesses need, enabling people to work rather than live off benefits. This will create the foundations for UK economic growth.” Can this ‘car-crash’ be stopped ? Andrew Bailey apparently believes not. The base rate was again left at its current punishing level yesterday. I suspect he maintained his usual non-confrontational approach at the MPC meeting, and not interrupt the myopic group-think debate on the evils of inflation. Bailey had the opportunity to raise relevant questions about the BoE dual mandate: to control inflation while also fostering economic growth. Alas, only one economist recognised the growth failings of the UK economy. She was outvoted 8-1. In contrast, the European Central Bank has adopted a more balanced approach, reducing rates to stimulate positive economic sentiment. As always, I welcome your views on this. Keir Starmer Rt Hon Rachel Reeves Bank of England #economy #government #banking #finance #debt

The wild ride of politics? “From London to New York, the political landscape is a stage where the bizarre becomes the norm. Witness the rise of leaders whose actions blur the line between reality and satire. As the audience laughs and gasps, one question lingers: What happens when the absurd becomes our everyday reality?” I invite you to read…. #politics #government #satire #hollywood #blockbuster

Another week passed … I need to be cheered up! This photo summed up my woes but really made me laugh out loud! Well done Mr Bean.. So happy Friday… enjoy your weekend and try not to worry too much about the inept dynamic duo of Starmer & Reeves. 😇 #HappyFriday #positivity #business #economy #humour

Reeves plans to take key benefits away from disabled people. On 26th March the Chancellor is set to make a controversial Spring Statement that threatens to strip vital benefits from those with disabilities. A report today from ITV News revealed that the government plans to implement over £6 billion in welfare savings, which will impose tougher tests for a key disability benefits. This means those deemed ‘unfit to work’ can lose crucial financial support at a time when they need it most. Key Takeaways: •A radical package of reforms aims to generate £5 billion in savings by making it harder to qualify for Personal Independence Payments (PIP), a benefit to help cover the additional costs of living with a disability. •PIP payments are set to be frozen next year, failing to rise with inflation, further eroding financial security for those who rely on them. •The basic rate of Universal Credit for job seekers will be raised, the rate for those judged unfit for work will see cuts. •The government plans to reinvest £1 billion into employment support for those required to seek work. Reeves argues that many people with disabilities are “eager to work but lack adequate support to find suitable employment.” This is her justification for major cuts to benefits for some of the most vulnerable in our society. In this context, Liz Kendall, the Secretary of State for Work and Pensions, has criticised the current welfare system as "broken,” also emphasising the need to get more people into work. However, Kendall’s comments reveal a troubling narrative. She has stated that "the number of people on benefits ‘who pretend’ they can’t work is not good enough.” She added they are “taking the micky.” The arrogance of her statements is alarming. Such views disregard the reality faced by individuals with disabilities, as a recent survey by the Department for Work and Pensions found that nearly 49% of respondents believe they can never work. Despite this, Kendall insists that “more of those people could work,” revealing a complete disconnect from the lived experiences of those affected. James Taylor, Director of Strategy at the disability equality charity Scope, cautions that "ripping PIP away will be catastrophic for disabled people.” He added: “the additional costs associated with disabilities do not vanish simply because eligibility criteria are tightened…many depend on PIP to cover essential expenses, including transportation to work and necessary equipment.” These comments from Mr. Taylor underscore the stark reality of the spending cuts Reeves has planned. Such measures threaten to push even more disabled people into poverty, worsening their struggles rather than leading them to employment. Ultimately, the planned cuts represent not just a financial decision but a moral failing on the part of the government. My major concern is an already bad situation is about to be made much worse. What do you think? #budget #government #welfare #poverty

Unacceptable - Another business casualty caused by Rachel Reeves. A Harrogate institution, founded in 1906 - forced to close its doors. We can only live in hope that on the 26th March Reeves (and Starmer) recognise the massive errors made in the autumn budget. There is a real opportunity to make adjustments that allows the April tax rises to be seen as more ‘acceptable’, balanced against the spending cuts to be announced. This would be hugely beneficial and could instill much needed business confidence plus improve consumer confidence, which has collapsed. I find it difficult to imagine a situation where Reeves and Starmer are capable of making such a sensible decision. But I am very happy to be corrected. #economy #confidence #government #budget

The Illusion of Growth: The Toxic Impact of Reeves’ Budget on the UK Economy. Sunday, a day for relaxing, a day to catch-up on the news. Hopefully, something positive to read and reflect upon? Alas no. The debate surrounding Rachel Reeves' budget has intensified, with business leaders warning of its seriously detrimental effects on the UK economy. I decided to look back and consider the content of several critical news reports published in the past few weeks. CityAM's article on 7th February, revealed the growing disillusionment of business, and included comments from the Bank of England Governor who confirmed he had slashed the UK economic growth forecast in half as a consequence. The Guardian, last Saturday 15th February, outlined three ‘unthinkable’ strategies for Reeves to avert an economic crisis, underscoring the urgency of the situation. One key take-away was: “The bind she finds herself in is more the stuff of a chancellor’s nightmares than dreams”. In a similar vein, today’s reading in the Telegraph reported, the CEO of ‘Five Guys’ has expressed huge frustration over Reeves' tax policies, claiming they are stifling growth in the hospitality sector. This after another Telegraph piece last Thursday, with its budget implications, read: “Pensioners will suffer another blow under Labour if Rachel Reeves goes ahead with cutting the cash ISA limit to £4000”. Yet, the Starmer administration maintains that the budget and subsequent announcements on matters, such as the treatment of cash ISAs, has been welcomed by the public and businesses? I consider this claim seems at best ill-informed, but more likely a display of arrogance that ignores the daily struggles faced by UK companies and the alarming collapse in consumer confidence. The government's strategy appears to involve misrepresenting facts and making untruthful statements, relying on the ‘Illusory Truth Effect’—where repeated false information is accepted as truth. As this narrative persists, the gap between reality and perception widens, leaving businesses to suffer. The consequences are dire; as businesses struggle under increased taxes, consumer confidence erodes. What price will the UK economy pay for a budget driven by a failing strategy that deepens the crisis? In short, the Reeves and Starmer ‘growth’ policies are having entirely the opposite effect. Is it likely there will be a frank discussion about our economy? When will Starmer and Reeves listen to those affected by their decisions? Might this pave a genuine path toward UK growth and stability, rather than one built on illusion? Or are they simply out of their depth? I welcome your views. #economy #business #consumers #government #growth #crisis

British soldiers to fight Russians? I must say I laughed out loud seeing this photograph. It certainly somewhat surprised the people on the train carriage as they all sat quietly reading their newspapers this morning. Starmer has had one of those attention seeking moments and announced he is “ready and willing” to put British troops on the ground in Ukraine to enforce any peace deal. But only if he was allowed to dress-up like a soldier! One of two key facts he failed to mention is his resistence to private calls from military chiefs to go beyond the 2.5 per cent GDP defence spending target. Spending is currently at 2.3 per cent. Another fact is that the British soldier count has been falling. Last spring, the number of Army troops dropped below 73,000 for the first time since the Napoleonic era. By way of comparison the strength of the British military during the World Wars was a peak of 4m soldiers in 1918 and 2.9m in 1945. The ‘Dads Army’ Homeguard during WW2 evolved into a well-equipped and well-trained army of 1.7 million men. I would add in 1989, the British Armed Forces had a peacetime strength of 311,600 men. This is a figure that I believe to be more representative of our defence needs today. In 1989, defence expenditures were 4.09% of GDP. What are your views on the need to provide increased defence spending on the UK? What should be considered adequate? Or should we be content knowing the PM can simply dress-up as a soldier to show the World the UK is not to be messed with? #UKArmy #Defence #Ukraine #War #Budget

UK inflation increases to 3% - Is this really a problem? Key Takeaways: “ Economists polled by Reuters had expected a headline inflation reading of 2.8%, pushed up from December's 2.5% rate by factors including an increase in a cap on bus fares and a tax hit to private school fees by the government of Prime Minister Keir Starmer.” “Services inflation - a key gauge of price pressures for the central bank - stood at 5.0% in January compared with 4.4% in December, the ONS said. The economists polled by Reuters and the BoE had forecast it would pick up by more to 5.2%.” I consider ‘Interplay’ is the key word in the ongoing ramifications of inflation. In this regard, what is conspicuous by its absence in the variety of news reports and posts, is the impact of the 2007/08 financial crash on UK wages and the broader economy? It was profound and certainly long lasting. It is small wonder that we have had to endure a ‘cost of living crisis’ which remains ongoing. In this regard, the number of food bank users in the UK increased from c26,000 in 2008 to c3.1million in 2024! This is far more concerning than supply driven inflation now constantly moving between c2.5% and c3.5%. I believe the days of a double figure spike are no longer a concern. Why? According to research by the Trussell Trust, a UK food bank network, at least 9.3 million people in the UK are facing hunger and hardship in 2024. This is set to grow. The new Labour administration is also set to exacerbate the problem as a consequence of the Reeves disastrous autumn budget. April is fast approaching and UK business leaders are very concerned. Therefore the BoE needs to continue to follow the ECB and the FED with a shift in focus onto the economy rather than a fixation on inflation. Rates need to reduce further to achieve this. But there also needs to be more constructive dialogue between Bailey, Starmer and Reeves.🙏🏼 What do you think? I welcome your comments. #inflation #economy #government #business