Government and Banks need to be on Same Page

The United Kingdom is a big country and undoubtedly an extremely strong economy of the region. Though the crisis in the European Union has hurt the economy but it is still a huge economy and certainly has the potential to rise again to the same heights. Banks are often blamed by the government for the debacle that the UK economy has seen over the past four years, actually the responsibility lies on all the stakeholders and government cannot be offloaded from the entire burden by mere shaking of the body. It has negatively affected the UK wholesale business as well. Fact is that all stakeholders have a role to play in an economy and if the banks were being a bit reserved, it was government’s duty to provide such conditions that could restore the belief of the banks.

But this petty flip flop of the blame between the major banks and the government has cost the public big time and now it is time for the players to lay down the arms and settle the issue through proper policy making and strategizing their future programs. Though the government has decided to launch a new bank with the help of public and private sector but it is only in the initial stages as yet and the slow recovery is still costing the businesses big time. The main things that the government needs to do are still missing and unless and until the steps are not prioritized, the issue is not going to get resolved.

The major role that the government needs to play is that of the big boss and it has to take some unpopular decisions that are a must for the revival of the economy. It is often blamed by the opposition that the drastic cut in the costs by the government immediately had put a dent in the spending habits because a large number of people were laid off and as a result, the country has not been able to survive as yet. This argument, though holds some weight, but must be corrected in the long run. The point here is, that the government must take measures on war footings in order to give a good push to this economy. The cost cuttings should be minimized and the developmental works should also be revived even if they put an initial burden on the national exchequer.

Banks must also be given assurances and should be made to rethink their strategies as far as handing out loans and financing businesses is concerned. Small and medium size businesses are facing serious issues only because these banks are not willing to finance them and certainly the big businesses can only be few in number. The main source of generating wealth and employment in a country are the medium size businesses. Government has already taken a few steps, and needs to take a few more like establishing discount houses with the collaboration of public and private sector. Once the businesses will start thriving, the banks will sooner or later have to start financing these businesses as they too survive on business themselves.