The Government plays a major role in businesses they make the rules and frameworks in which businesses are able to compete against each other. From time to time the government will change these rules and frameworks forcing businesses to change the way they operate. Key areas of government policy that takes place into business are: Economic policy A key area of government economic policy is the role that the government gives to the country in the economy. From 1945 and 1979 the government increasingly get involved in the economy by creating the country run the industries which usually took the form of public corporations.
However, from 1979 onwards we saw an era of privatisation in which industries were sold off to private shareholders to create a more competitive business environment. Another area of economic policy this relates to the interest rates. In this country the level of interest rates is determined by a government. A rise in interest rates raises the costs to business of borrowing money, and also causes consumers to reduce expenditure (leading to a fall in business sales). Taxation
Taxation in the United Kingdom involves payments to a minimum of two different levels of government: this is the central government (HM Revenue and Customs) and local government. Central government revenues come primarily from income tax, National Insurance contributions; value added tax, corporation tax and fuel duty. Local government revenues come primarily from grants from central government funds, business rates in England and Wales, Council Tax and increasingly from fees and charges such as those from on-street parking.
Government spending policy This are the spending made on things like education, health care services and pensions etc. If the government spends more on schools, this will increase the income of businesses that supply schools with books, equipment etc. The money for the spending's comes from the tax paid by the businesses, public and etc. The government has prevented people from becoming homeless through welfare, unemployment compensation, health care service etc.
The government provides training programs for people on welfare to help them get to work, tax benefits for companies that hire people on welfare, and convicts, and tax credits for people that work. The government has given tax incentives for businesses to hire. The government creates infrastructure that allows for people to travel from place to place quickly, fire protection, police protection, etc. The government has also created agencies like the jobcentres so people can find jobs from there and start working.
The government does this for the businesses to get more productive workers that possess a wider range of skills. The Characteristics of local businesses (Newham). Newham has developed massively there are number of changes made in this years as now the 2012 Olympic games are also coming up. The government plays a huge role in this to help the businesses make growth. Business rates are pooled by central government and redistributed to local authorities according to the number of people living in the area.
The money, together with revenue from council tax payers, revenue support grant provided by the Government and certain other sums, this are used to pay for the services provided by your local authority and other local authorities within the area. Now the government has also carried out a new scheme called the regeneration this scheme is basically about developing Newham by making various changes such as more businesses opening in the areas. The government is providing too many opportunities for the businesses in 2012.
There's a website created called CompeteFor, simply get registered free then they will be giving you opportunities about what you can do in 2012. Green Street is alive with many shops, restaurant and the sights that reflect Newham with the cultural diversity, innovative style and boundless energy. Green Street ranks up to 400 shops selling everything. This makes a big tourist attraction on its own. There are things you can get from all around the world, with Asian food, fashion clothes, jewellery. There's queens market as well which has many stalls selling spices, fruit and vegetables and other stuff like Indian ware.