2012 will be a year of 'Fortune to the Brave'
By Q3 next year I'm going to have a business as big as Google or M12.
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Business to cut investment in blow to George Osborne's hopes for growth
"George Osborne has pinned his hopes for next year’s lacklustre recovery on corporate spending, which the Office for Budget Responsibility (OBR) has estimated will account for 0.6pc of the 0.7pc growth predicted for 2012.
Investment is expected to have contracted this year by 0.8pc as companies held on to their cash rather than invest and create jobs.
Raising fresh concerns about the outlook for 2012, the Bank’s summary of business conditions found that “there had been a further decline in investment intentions, pointing to a slowing in the growth rate of spending no capital over the next 12 months.”
Companies have now reported a decline in investment intentions for four months running, a trend that has accelerated since the uncertainty caused by the eurozone crisis intensified. Planned growth in spending by the country’s powerhouse services industry is now no higher than in the first quarter of 2010 – a year in which business investment expanded by just 0.8pc.
The OBR is counting on business investment rising by 7.7pc to deliver such a large proportion of next year’s overall growth. Manufacturers’ investment intentions are holding up better, but are still at their lowest level in a year. "
Source: Business to cut investment in blow to George Osborne's hopes for growth - Telegraph
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AtW's comment: in his infinite wisdom Mr Osborne cut corp tax a little but drastically reduced annual investment allowance from £100k this year to £25k next. How many of the ministers actually run companies in the last 10 years in a proper management capacity rather than being non-exec chairman kind of person?
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