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Will the budget deficit eventually destroy UK business ( Need some RW examples) [BUS]

Hey so ive been set the task of writing a 40 mark essay, for the essay title above but im really struggling to find some good business examples that i can relate to in my essay.

Im not looking for spoon-feeding but my google searches come up with naught, so im wondering does anyone know any leads i could follow or point me in the right direction?

That would be extremely use full! thanks a bunch.

jack
Reply 1
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The Phelps
3
I don't know how much help I could be, but here goes...

A high budget deficit will lead to national debt. This debt carries interest which means two things. One is that future money that could be spent on infrastructure that businesses benefit from or tax breaks for businesses will now be diverted into paying of the debt and the interest it has accumulated. The second is if we're already running a deficit (which we are) how long until the government has to drastically change it's economic policies to avoid financial disaster. Would you want to set up or expand a business in a country where the government might just one day decide with good reason that they need to triple corporation tax?

Surely you don't get a better example than Greece? Possibly Argentina's government collapse around 2001.

I don't do Business so I have no idea if that's any help to your essay or not.
Reply 2
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jackdh
OP
I suppose greece will be good although i more looking for a large business which may have gone under due to large corporation tax but some of the points you made were great thanks for the quick reply!
Reply 3
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The Phelps
3
Original post by jackdh
I suppose greece will be good although i more looking for a large business which may have gone under due to large corporation tax but some of the points you made were great thanks for the quick reply!


Vodafone! They're Britains largest business and regularly avoid paying tax. The Guardian article is your best bet as it's a respected news outlet although thisismoney is well known it's owned/joint with the Daily Mail.

http://www.guardian.co.uk/commentisfree/2010/oct/22/vodafone-tax-case-leaves-sour-taste

http://www.thisismoney.co.uk/money/markets/article-2049496/Vodafone-pays-just-1-400-tax-profits-3-5bn.html

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