Paphitis is no fan of the political elite it seems. In a BBC interview that aired today he blames both Labour and the Conservatives for failing to explain the economic policies they would implement should they be in government in six months’ time.
Under parliamentary rules, Gordon Brown must declare an election before the summer and commentators expect the period between now and then to be filled with both sides shadow boxing each other.
With few pounds to splash out on incentives and tax increases required to plug the UK’s yawning deficit, neither side can promise much and so have resorted to taking swipes at each other.
Paphitis, among others, thinks this should convince many would-be entrepreneurs to delay starting their business until the next government’s economic framework becomes clear.
He points out that the brave new world could see increased VAT and other taxes, higher inflation and interest rates – all of which would be a shock to businesses. But worse than this is the uncertainty we currently face, he says.
“It’s just temporary,” he tells the Beeb. “I’m saying all entrepreneurs take calculated risks; when you can’t put the calculated in a risk then it becomes a gamble and you don’t want to be there just yet. Take your time.”
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