Welcome to another Enso newsletter, and as always, I hope you’re doing well.
As I write, my home town of Manchester is practically under siege as the Conservative Party conference begins. We’ve seen this quite a few times here, so there are no surprises about how it’s organised and its impact on the comings and goings of Mancunians trying to go about their business.
First, there’s the general inconvenience of the whole thing as sections of the city are cordoned off with roads closed, steel fences erected, and police a-plenty to oversee the proceedings. I can only presume it’s to prevent admirers of the governing party from getting inside to tell them what a great job they’re doing!
We can expect many noisy people outside the Manchester Conference Centre screaming goodwill messages to the attendees inside. Plus, an army of journalists will be milling around doing various vox-pops with startled Mancs to see how the various speeches and fringe event speakers have landed with the great British public.
This year promises to be very entertaining, given that different flavours of Tories have decided they want to, shall we say, offer something to everyone (except perhaps HS2 for the north). Plus, of course, it’s likely to be the last conference season before a General Election, so there’s lots to play for.
All in all, it’s great fun no matter what your political persuasion and the fact it’s being held in Manchester only underlines how important the city has become in the UK political landscape.
I thought I’d add to the debates, so here are some of my thoughts on the key issues I’d like to see discussed and why I believe they are essential.
Taxation
It’s shocking that we now have the highest levels of taxation since WW2. When you consider corporation tax, VAT, National Insurance and the effects of fiscal drag on personal taxation, it’s little wonder we all feel poorer and wage demands are increasing. Add the income-shrinking impact of high inflation, and it’s not a pretty picture. Some of this is a natural consequence of the pandemic and Putin’s weaponising of fuel, so the UK is not alone in this regard. But we can’t just shrug our shoulders and say: ‘It is what it is’.
The path away from this state of affairs is likely to be long and arduous no matter who’s in power, but for me, prioritising the areas where the benefit is most significant is paramount. That means changing the tax system to drive business investment, innovation and growth. We need to incrementally edge down corporate taxes and incentivise business start-ups, especially in cutting-edge technologies that promote greater productivity and world-beating product development that puts UK plc on the map. That’s where the taxation fightback begins.
Green Initiatives
I’ve discussed how vital eco-innovation is to our long-term future. I was an early adopter of EVs, and, as you know, Enso is a virtual business that uses paper-free, tech-driven business practices. So it’s slightly worrying that the Prime Minister recently tried to make political capital by rowing back from our 2030 Net Zero commitments to the extent he even banned policies that don’t exist. Seven bins, anyone, anyone?
One of the few substantive elements of the speech was the delay in banning the manufacture of petrol and diesel cars until 2035. The fact that carmakers like Ford and Stellantis panned his speech showed that perhaps he’s off message here. As a business owner, you’ll know that if a big plank of your long-term strategic planning is suddenly yanked away for dubious reasons, you wouldn’t be best pleased. However, Jaguar Land Rover and Toyota thought the move was measured and pragmatic. I wonder if that reflects their readiness for a fossil-free future more than a concern for the planet’s resources.
If this move stands, I can see the efforts to build an EV support infrastructure slow down with all the implications for jobs and the green economy that would entail. That’s a massive disappointment to anyone who has invested in a greener future by buying an electric car, and I’d like to see a rethink here.
Public Services
These are murky waters, much like our seas and rivers at the moment! But few would disagree that the institutions we rely on to help us when we need them are in a woeful state. The NHS, Railways, roads and motorways, energy, social care, policing and welfare, to name but a few, are all in a parlous state. Each has unique problems, and there’s no universal solution to solve them. What we do know is the answers will be expensive, and the money must come from somewhere.
Personally, I’m open to pragmatic solutions, which may mean doing things differently in the future. It may seem heresy to say it, but a hybrid health model may be the best solution when considered in the round. Renationalising some industries may be a solution in other areas. In all cases, using tech-based solutions harnessing AI’s growing power to drive efficiency and improve planning and productivity is a must.
For example, consider how Estonia manages its public services with its Bürokratt AI virtual assistant. This voice-enabled AI system allows Estonians to access all aspects of their interactions with the state automatically, and it’s going well for them. It would be a mammoth task to do this in the UK, but just think how much a service like that would save the UK in the long run. It’d be worth the effort, wouldn’t it?
It’s difficult to sever the link between political ideology and the agreed common good, and effective change is never quick, as Mrs Truss and Mr Kwarteng dramatically demonstrated. It would be great if we could create long-term initiatives that we can all agree should exist outside of the realm of Westminster that deliver beneficial change in all the areas above (and so much more) when implemented.
If we hear some of that in Manchester this week (or in Liverpool next), we may all have grounds for optimism.
Savings Update
In October 2022, I wrote a newsletter about personal savings accounts offering excellent returns. Was it that long ago? Phew, how time flies! Well, things have improved, so here’s a quick update on where you might stash any spare bits of cash you may be lucky enough to have lying around.
Safe As Houses NS&I
Much has been made of the headline rate of 6.2% One-Year Growth Bonds offered by state bank NS&I. It’s a 100% safe way to make marketing-leading returns on up to £1 million deposits that can start with a modest £500. Maybe it’s time to check the back of the sofa and bang some cash into this product, especially if interest rates start coming down.
Drive Great Returns With Ford Money
This is the second time we’ve mentioned this car firm. But strange as it seems, this company also offers banking services. If you can squirrel away your money for longer, maybe its Fixed Saver 2-year product may be the way to go. You can put away up to £2 million and get a 6.05% return, which can also be paid monthly at 5.89%. That’s a maximum of £121K per year or £9800 monthly. Not bad if you do have the cash or some fraction thereof!
Send Your Cash To Coventry
If you need access to your cash, good options are still available. Coventry Building Society offers a 5.2% savings account with returns paid annually or monthly, and you can make up to 3 withdrawals per year without penalty. With a maximum deposit of £250k, that’s a tasty way to make £13k without forgoing the option to get some cash for those unexpected events.
Let me stress this isn’t financial advice, just a heads up on some of the remarkable savings rates currently available, which some younger readers will never have seen before. Do thorough research and find the best product for you regarding terms, returns and access. You’ll find there’s plenty to choose from.
OK, that’s it for this month. If you need to chat about any of the above or whatever springs to mind, drop me a line on the usual channels, use 0161 511 2143, or email me at adam@meetenso.co.uk.
All the best
Adam