I have never understood the premise that recovery will be high- street-consumer led. Confidence must derive from the business sector, and a fundamental inducement to spending must rest with the reintroduction of 100 per cent capital allowances. The individual will not be persuaded to spend until he sees benefit reaching his pocket. The occasional drip of modest interest rate cuts does not have sufficient impact to induce high street spending.
Thus the impetus must fall upon the business sector, and to permit that community to update its capital equipment, with the aid of full capital allowances, will enable industry to modernise and at the same time stimulate the manufacturing and retail industries. Who knows, the banks may even be persuaded to participate by easing the cash-flow difficulties they have been creating.
RICHARD P. COOK
Wadhurst, East Sussex
23 OctoberReuse content