UK Government Says for Every £1.00 Spent on Investing in Broadband the Economy will Benefit by Twenty Times – True or False?

#AceFinanceNews – BRITAIN – May 17 – For every £1 the government is investing in broadband, the UK economy will benefit by £20, an expert report published recently revealed. 

The report also reveals that in addition to offering outstanding value for taxpayer money the roll-out of super-fast broadband nationwide will also make a real impact on the way we live – from working at home to watching TV content on-line.

UK Broadband Impact Study – Impact Report, by analysts SQW (with Cambridge Econometrics) says the government’s investment in super-fast broadband will deliver a major boost to the UK economy.

The study is the most in-depth and rigorous examination of the impact of broadband in the UK, and looks at the economic, environmental and social benefits of superfast broadband.

Key findings on the impact of the government’s broadband investment include:

  • excellent value for taxpayer money with a net return of £20 for every £1 spent by 2024
  • significant short-term boost to the UK economy as the network construction adds around £1.5 billion to the economy; adding £0.5 billion and about 11,000 jobs in 2014 alone
  • long-term growth to the UK economy with public investment increasing annual GVA by £6.3 billion and causing a net increase of 20,000 jobs in the UK by 2024
  • household savings of £45 million a year by 2024 made through people being able to work from home more
  • benefits to be shared across the UK, helping the rebalancing of our economy. Approximately 89% of the benefits will be in areas outside London and the South East of England with rural areas set to benefit most
  • around 0.4 million tonnes a year of CO2e savings through reduced commuting, business travel and firms shifting to more energy-efficient cloud computing. 

Secretary of State for Culture, Media and Sport Maria Miller said:

What this report shows us is that as well as superfast broadband being good for economic growth it will make even more of a positive impact on the way we live, helping us work more productively and get online faster.

Our broadband rollout is one of the best in Europe with almost three quarters of the UK able to access superfast speeds. This is making a real difference to people in communities across the UK from small businesses able to expand, school children being able to log on to do their homework or people being able to work from home. This investment in technology is vital for our future and will help Britain continue to compete in the global race and improve the way we live and work.

Dr Pantelis Koutroumpis, Research Fellow at Imperial College and Advisor of the Broadband Impact Report said:

Looking at the evolution of broadband speeds in different geographies, and the ongoing network deployments across the UK, this study brings new insights into the impact of improved broadband access on the national and local economies.

Notably, the added capacity particularly affects small and medium businesses across industries, while the intervention helps address a growing digital divide. This motivates further research in the future as more empirical data become available – for example, in the relationship between business speed increases and productivity growth.

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#afn2014, #economy-of-the-united-kingdom, #expert-report, #imperial-college-london, #maria-miller, #research-fellow, #secretary-of-state-for-culture-media-and-sport, #skive-airport, #south-east-england

Sell-Out of Tax Payers – As Sell-Off of Lloyds Bank – To Large Investors – Takes Place

English: Study on alternative investments by i...

English: Study on alternative investments by institutional investors. (Photo credit: Wikipedia)

Government sells 6 per cent of shares in Lloyds Banking Group, at 75p per share.

The government has today begun the process of selling part of its shares in Lloyd’s Banking Group. It has sold 6 per cent of the shares in the bank, at a price of 75p per share. A profit has been made from the sale, which will be used to pay down the national debt.

The Chancellor received advice from UK Financial Investments yesterday that it would be appropriate to begin the process to sell part of the government’s shareholding in Lloyd’s. The Chancellor agreed with that advice and authorised the process to begin.

Today marks an important step in the government’s plan for the recovery of Britain’s banking system.

The Chancellor, George Osborne, said:

I can confirm this morning that we have sold 6% of Lloyd’s Bank at 75p a share. That is a profit for taxpayers, and rightly so. The money will be used to reduce the national debt by over half a billion pounds.

This is another step in the long journey in putting right what went so badly wrong in the British economy; it’s another step in repairing the banks; it’s another step in getting the money back for the taxpayer; and it’s another step in reducing our national debt.

All of those things together are good news.

If you look at what has happened over the last 12 hours with Lloyd’s, you have investors from around the world investing in a British bank. That is a sign the British economy is turning a corner.

On the face of it this looks good for the tax payer  and couched in the correct way such as the return and the overall benefits, we could start to believe this government really cares about the use of tax payers money! The fact is look much deeper at the way it has been worded by our Chancellor and look at who will benefit and a very different story emerges! The actual shares are to be sold off or should l say offered to:

 Institutional investors are organizations which pool large sums of money and invest those sums in securitiesreal property and other investment assets. They can also include operating companies which decide to invest their profits to some degree in these types of assets.

Typical investors include banks, insurance companies, retirement or pension fundshedge fundsinvestment advisors and mutual funds. Their role in the economy is to act as highly specialized investors on behalf of others. For instance, an ordinary person will have a pension from his employer. The employer gives that person’s pension contributions to a fund. The fund will buy shares in a company, or some other financial product. Funds are useful because they will hold a broad portfolio of investments in many companies. This spreads risk, so if one company fails, it will be only a small part of the whole fund’s investment.

Institutional investors will have a lot of influence in the management of corporations because they will be entitled to exercise the voting rights in a company. They can actively engage in corporate governance. Furthermore, because institutional investors have the freedom to buy and sell shares, they can play a large part in which companies stay solvent, and which go under. Influencing the conduct of listed companies, and providing them with capital are all part of the job of investment management.

This will of course look to bolster the economy for the institutions and at the same time make the pension funds look more healthy for the beleaguered OAPS investments, which of course were decimated back in 2008, at the time of the financial crisis, brought on mainly by the banks and their risky lending policy, something that our previous Bank of England Manager would not sanction, but enter Osborne’s new replacement and all of a sudden, risky lending is back on the cards! Anyone uncertain of Mr Carney’s track record for taking risks read his policy in the Canadian Banking Industry and see what l mean!

So now we have what l can only term as a sell-out of the tax payer, having bolstered up the banks with the hard-earned tax payers funds, using infrastructure funds ,that should light our streets or renew our roads, and now the 4 year plan is completed! Oh yes also a split between the savings and retail arms of what was Lloyd’s TSB Bank Plc and now we have to distinct banks Lloyd’s Bank PLC and TSB Bank PLC, has also taken place, allowing any toxic assets to disappear, into the restructuring process!

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/240104/Chancellor_letter.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/240105/UKFI_letter.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/240106/Perm_sec.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/240104/Chancellor_letter.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/240105/UKFI_letter.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/240106/Perm_sec.pdf

UK Financial Investments:

Take a look at their site and view their pdf containing details of the sell-off you even have to agree not to use the information in the US, but visit here is a link to their site: http://www.ukfi.co.uk/

#acenewsservices, #sellout, #business, #economy, #economy-of-the-united-kingdom, #george-osborne, #government, #lloyds, #lloyds-bank, #lloyds-banking-group, #mutual-fund, #politics, #the-survivors-of-the-chancellor, #uk-financial-investments-limited