The Hidden Crisis in the UK Economy

✉️ 80% of what you need to know about personal finance on 2 pages

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Disclaimer:
This is not financial advice. The reason it’s not financial advice is because it’s not tailored to you. We explain the principles of building wealth but if you want personalised advice, it’s worth speaking to a financial advisor. As with everything financial, please do your own research. We really encourage that because no one cares more about your money than you and if you learn the basics then it will change your life.

Chapters:

00:00-00:24 - Intro
00:24-07:59 - What is the problem?
07:59- 18:00 - Why is the UK underperforming?
18:00-18:50 - Tide ad
18:50-22:07 - The problem with passive investing
22:07-27:19 - The problem with cryptocurrency
27:19-29:32- Do politicians understand the problem?
29:32-30:28 - Vanta ad
30:28-35:30 - Investing in small companies
35:30-39:08- How do we fix it?
39:08-52:12 - Why biotech will be the biggest investment theme of the next decade
52:12-56:04 - How the UK could benefit from the rise of biotech
56:04-01:02:25 How you could benefit from the rise of biotech
01:02:25-01:03:00 - Our free guide to how to change your financial future

[MakingMoneyPodcast]

Hello! We’ve put something together for you - a free guide for beginners that shows 80% of what you need to know about personal finance on 2 pages.

[willkinmont]

Singapore companies have boards stuffed full of PhD engineers. In the UK, we glorify 2nd rate spiv salesmen.

[thomaswhitehead]

So refreshing to hear this conversation. I'm not a financial expert but you can feel the slow rot in this country. As Andrew said, how was none of this a major topic during the election?!? We're slow walking into a deeper disaster.

[andrewn]

Why would I buy a smaller companies UK fund/trust?

- 0.5% stamp duty on purchase.
- 1-2% annual management fees
- 40% tax on my 3% dividend yield = 1.2%/yr in additional tax drag
- 20 years of under-performance vs the world
- High exchange spreads
- Dire UK productivity, with no relief in any projections
- Taxes on UK businesses rising.


Alternatively i can go buy a big global ETF with zero transaction and holding cost and only a 0.1% management fee and much higher tax efficiency via lower dividends.

Not hard to see why UK stock investment is dead.

And the chancellor has the sheer gall to go and tax share gains even further

[Rahul-oybp]

In the US engineers are in front running the companies, and in the UK, sales managers are trying to run the companies.

[LA-frfx]

Fantastic podcast - the fact that politicians, seldom mention these topics, highlight's the state of the nation!

[treyquattro]

I agree that it's an absolute national disgrace that the UK has been run for rentiers and not entrepreneurs. The political class has a huge responsibility for this, both Labour and Conservative, but mainly the latter because they're "supposed" to know better, but the last 14 years put the lie to that idea. And now the Tories are being led by the most incompetent business secretary of the past 5 decades! God help Britain.

[Han-Tyumi]

ARM Holdings: world-class semiconductor company based in Cambridge, yet now owned by Japanese Softbank. A national scandal. I hold some UK stocks, but 75% of my portfolio is in the US. Brexit was the final straw for me. Your man's bang on: we can't be honest with ourselves (or even be bothered to put the effort into having the awareness) that there's a serious problem with our economy and the knock-on consequences that has for our society.

[Unow]

Uk pensions primarilly invest into Treasuries and that is why our oensions have not performed over last 10 plus years. Inaddtion, British schools don't even teach kids, teenagers in particular, how to manage your monthly income and running your own home financially. Shocking.

[maybole]

I used to work for a software house startup in England. They listed on Wall Street. Before I left the company was taken over by an American company and they fired a large part of the staff

[twogsds]

When we were trying to get investment for inventions that my husband had patented, Angel Investors wouldn’t consider looking at you unless in your business plan you could state who you would be selling your company to in 5 years, this is the reality of trying to get started in the U.K.

[stevedazz]

Wow. Only a few minutes in and it’s great to hear this. Equity culture and LSE etc. Started with Blair Brown and tax treatment of dividends and impact on pension funds in 1990s. Remember my dad being proper angry about it (he worked in a retail bank). I didn’t understand at the time despite having a degree in economics…

[KeldonA]

We've also lost:
1. DeepMind to Google.
2. RareWare (Goldeneye, Perfect Dark, Killer Instinct, Battle toads, Donkey Kong Country) to Microsoft.
3. DMA Design (Grand Theft Auto) to Rockstar.
4. SI Games (Football Manager) to Eidos and then SEGA.

[MRW]

BBC used to be my channel of choice for information but it has been so dumbed down I cannot bear to watch it and BBC Radio 4 has also been dumbed down.
Well done for arranging this interview.

[Sawasdeekat]

Great interview, this should be forwarded to every UK politician on any side.

[vanster]

The Irish GDP per capita is not what it appears to being a tax haven for Apple and Microsoft does not translate to a better life for the people.

[SkintLivingUK]

I used to be a supply teacher but I no longer do it as agencies are still paying the 2008 rate so its not worth doing anymore. They have slightly raised teaching assistant rate to match minimum wage but the teaching rate is stagnant. I told my last agency to buy a calendar. In the media they talk about mainstream teachers not being paid enough but there's total silence on the rates of pay for agency work, not just teachers. I often get enquiry emails offering me work but I just block them now. All that work as a teacher and all that investment in qualifications is not worth a penny. 2 of my 3 kids have a degree but I have told my last one to not bother as it is now a total rip off - especially with the prices going up - and a waste of time as many employers aren't bothered about it anymore. I'm 57 and still paying student loans, its all a sick joke on people!!!

[GETJUSTICEU]

15:01 Almost $1trillion in profits is syphoned out of the UK to foriegn companies mainly Wall Street every year increasing year after year. This is about 30% of the UK GDP.

[davehitchman]

I wanted to start a business in the UK, First of course the banks merely told me that I couldnt make anything in the UK, no one does. Then tried to use an investor "angel" and all they did was run us around for 18 months adding management overhead. The amount of money available as start up funding is near zero, the interest rates are sky high, the timescales to pay it back tiny. Then go to Germany, and well, you can borrow, the government will give you money to start, will pay you to live while you get started... no, you cant start anything here any more. The country is totally fucked by those in charge

[TheLittleEconomist]

He didn’t talk about private equity. Most smaller tech firms in the UK are owned by private equity firms, basically off market and not accessible to the average joe. Not sure how much pension funds are invested in private equity.