September 28, 2010 10:39 ET

Will the IMF's Recent Approval of the Coalition's Strategy for the UK Economy be Good for Business? Asks PerDM's CEO Jesse Young

LONDON, UNITED KINGDOM--(Marketwire - Sept. 28, 2010) - PerDM's Jesse Young reflects this week on the apparent good news that the International Monetary Fund [IMF] has backed the government's plans for reducing the budget deficit, and whether or not this is, as Chancellor George Osborne says, another indication that the UK economy is on the mend.

The Washington based IMF have praised Mr. Osborne's debt cutting program as "strong and credible". It says that: "The UK economy is on the mend. The plan is essential to ensure that debt sustainability greatly reduces the risk of costly loss of confidence in public finances and supports balanced recovery". PerDM Group's CEO Jesse Young questions whether business will see the benefits of this in the short term? "Many companies sit outside this cosy macro economic club and have to work within the governments austerity programme. We at PerDM sit at the sharp end of the current economic climate as we work more and more with businesses trying to sustain revenues while cutting overheads" he said.

Yes the predictions that our economy will grow by at least 2% next year is good news but at what price in the short term? Currently there are no fiscal incentives for businesses to invest in themselves and there is no bank funding available unless directors are prepared to give personal guarantees linked to their homes.

Jesse Young believes that both sides of the funding divide have lost confidence in each other. "From a business perspective we see the banks achieving profit levels rivaling the pre credit crunch days but we don't see that washing through to the business sector". "At some point the government has to step into this void and give some incentive for lenders to support small and medium sized businesses".

PerDM is one of the UK's premier outsource sales organisations and work with some of the top UK brands to deliver innovative measurable sales strategies. "We don't do ordinary. Our clients don't want the same old, same old. They want results and we give them results", says Jesse.

The IMF may have given the thumbs up to the coalition's austerity programme, but it is still just that; an austerity programme which penalises the public sector and loads overheads onto the taxpayers. "Surely a more balanced approach would be to increase rewards for successful businesses and at the same time reduce the tax burden on companies turning over less than say £5m per annum" said Jesse. In the short term this rebalancing could see the banks looking more favourably on small businesses and opening up their lending books to a more diverse ambitious business sector. IMF approval is good for our reputation internationally. Taking care of business at home should be a government priority.

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