The Monimine financial assets solution to the 2017 Budget
The 2017 Budget had a definite safety-first emphasis, and has been met by a mixed reception. Phillip Hammond has seemingly attempted to acknowledge the large economic challenges facing the UK, but have his policies done enough to resolve the issues?
The shining light was the slash of stamp duty on properties of up to £300,000, which will inevitably help the lives of first time buyers getting onto the housing ladder. However, experts argue that this is just to mask the UK’s weakening economic future.
Is setting aside £3bn over the next two years for the Brexit aftermath realistically enough for any negative eventualities?
Growth forecasts of the UK economy have been drastically reduced. The Financial Times argue that this is because of ‘significant downward revision to potential productivity growth.’ The prediction is for less growth, less business investment and less productivity.
The £2.8bn cash booster which has been set aside for the under-pressure and under-funded, NHS will almost certainly not be enough.
The glass is half empty and there is not enough spare money in our economy. A helping hand would be warmly received to the British GPD and there is a realistic solution which can aid the issue.
The answer is simple.
According to Financial Conduct Authority (FCA) figures, there is approximately £200bn of dormant/unclaimed assets within UK financial institutions (FI.) But there is not enough pressure on FI’s, meaning they are inactive in attempting to trace the owners of the £200bn.
If pressure was increased on the financial service industry, we would see proactivity in them finding the rightful owners of these financial assets. It is more than likely that over 10% of this money has no home and can therefore be distributed into the economy for charitable causes. We would also see a ‘trickle’ up effect of the extra disposable income released to the public.
Therefore, £20bn (10%) could be released over the next two years. Pressure from government instruction would ensure that the FCA did enforce finding homes for orphan assets. This would mean that the state of the economy would be vastly improved, and finances would be in place for any aftershocks.
Josh Cousens – Monimine.