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Brown wants us to join his debt addiction

Gordon Brown is trying to save our businesses again – but only if they’re debt junkies like him. His plan is still vague, but it seems to involve the government insuring or guaranteeing corporate debt. Which assumes a company has or needs significant debt…

But the service sector is dominant in the UK. Service companies don’t use much working capital and generally have little or no debt – but are suffering horribly in this recession. (Labour of course are still thinking in Capitalist terms.)

Give small – or all – companies another six months to pay their taxes (VAT, payroll, rates, etc) and you’d give them a huge working capital injection to help them through the bad times. It’s simple to implement, has immediate effect, and shouldn’t cost much in the long run.

As a bonus, it would make startups far easier to finance, boosting the UK’s entrepreneurial sector – which could help us out of the Brown mess.