{"id":45678,"date":"2022-05-19T15:35:17","date_gmt":"2022-05-19T15:35:17","guid":{"rendered":"https:\/\/essays.homeworkacetutors.com\/2022\/05\/impact-of-government-spending-on-tesco\/"},"modified":"2022-05-19T15:35:17","modified_gmt":"2022-05-19T15:35:17","slug":"impact-of-government-spending-on-tesco","status":"publish","type":"post","link":"https:\/\/www.colapapers.com\/us\/impact-of-government-spending-on-tesco\/","title":{"rendered":"Impact of Government Spending on Tesco"},"content":{"rendered":"<div class=\"content position-relative mb-4\">\n<p>Government spending may refer to any expenditure made by local, regional or national governments. In most countries, including the UK, government spending makes up a significant proportion of the GDP <a href=\"https:\/\/www.ukessays.com\/essays\/economics\/explaining-and-analysing-gross-domestic-product-economics-essay.php\" target=\"_blank\" rel=\"noopener\">(Gross Domestic Product)<\/a>. Spending can be carried out in many different areas such as investments, loans, acquisitions and transfer payments. The main areas of UK government spending are pensions, health, education, debt interest and defence.<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"alignright\"><img decoding=\"async\" alt=\"\" class=\"wp-image-97395\" src=\"https:\/\/205207-619339-raikfcquaxqncofqfm.stackpathdns.com\/wp-content\/uploads\/2019\/03\/gdp.jpg\"\/><\/figure>\n<\/div>\n<p>There are many different reasons for<br \/>\ngovernment spending which include;<\/p>\n<ul>\n<li>To supply goods and services that the private<br \/>\nsector would fail to do such as public goods including defence, roads and<br \/>\nbridges, hospitals and schools as well as welfare payments and benefits<\/li>\n<li>To improve the output of the economy such as<br \/>\nspending on education and training to improve labour productivity<\/li>\n<li>To reduce the negative effects of<br \/>\nexternalities (which are third party effects arising from production and consumption of goods and services for which<br \/>\nno appropriate compensation is paid). An example would be pollution controls<\/li>\n<li>To subsidise industries who may need<br \/>\nfinancial support. For example, transport infrastructure projects will improve<br \/>\nthe tourism industry to different areas. These projects are unlikely to attract<br \/>\nprivate finance unless the public sector provides some of the high-risk<br \/>\nfinance. An example of the government providing financial support would be in<br \/>\n2009 when the UK government provided huge subsidises to the UK banking sector<br \/>\nto help deal with the financial crisis. Another industry which receives large<br \/>\ngovernment subsidies is agriculture.<\/li>\n<li>To help redistribute income and achieve more equity<\/li>\n<li>And to help inject extra spending into the<br \/>\neconomy which helps to increase economic activity.<\/li>\n<\/ul>\n<p>Government Spending must be funded.<br \/>\nThe funding comes from taxation and government borrowing \u2013 through selling<br \/>\ngovernment bonds. They sell government bonds at a fixed interest rate.<br \/>\nInvestors such as individuals, insurance companies and other governments are<br \/>\nwilling to buy these because they are very safe and secure. The government must<br \/>\nprepare a budget for their spending each year. This is known as The Budget to<br \/>\nthe public on the last Wednesday in March before the new fiscal year.<\/p>\n<p>Government spending can occur in many<br \/>\ndifferent ways which include spending on transport, paying unemployment<br \/>\nbenefits, giving money to local councils, funding wars, pensions and health<br \/>\ncare. Theresa May intends to increase government spending on health care and in<br \/>\nparticular, mental health care.<\/p>\n<p>Government spending can be classified<br \/>\ninto two different groups;<\/p>\n<p><strong>Current<br \/>\nspending <\/strong>\u2013 the day to day expenditure in the economy. Examples include the<br \/>\nprovision of health care in hospitals, providing education in schools and the<br \/>\npurchasing of medicine.<\/p>\n<p><strong>Capital<br \/>\nspending <\/strong>\u2013 the spending on capital projects. Examples include new flood<br \/>\ndefences, new power stations or the building of new roads and schools.<\/p>\n<p>Government spending is the main<br \/>\nstimulator of growth in the economy. Spending must be financed and the<br \/>\ngovernment has the power to make decisions such as how much to spend and how<br \/>\nthis expenditure is financed. Different types of governments will choose to spend<br \/>\ndifferently. For example, a conservative government or labour government may<br \/>\nhave very different plans when it comes to government spending. It is important<br \/>\nto spend to stabilise the economy.<\/p>\n<p>The level of government spending has<br \/>\nmany direct and indirect effects on all businesses. For firms selling goods and<br \/>\nservices to individual consumers and to other firms increased government<br \/>\nspending may mean higher taxes and higher taxes reduce the ability of customers<br \/>\nto purchase goods and services, which is likely to reduce consumer spending.<br \/>\nConsequently, increased government spending is often at the expense of private<br \/>\nsector spending and is therefore potentially harmful to some firms. On the<br \/>\nother hand, many businesses rely on government spending for their revenues and<br \/>\nprofits. For businesses that supply services to the public sector, demand is<br \/>\ndirectly linked to how much government is spending. Examples include<br \/>\nconstruction firms that build and repair the road network and IT system<br \/>\nconsultants who work for public sector organisations.<\/p>\n<p>Government spending has implications<br \/>\nfor Tesco as an organisation. If there is a fall in government spending, it<br \/>\nwill lead to lower aggregate demand for goods and services. Therefore, there<br \/>\nwill be a slowdown in economic growth, and if it is serious then it may cause a<br \/>\nrecession. This may lead to people becoming unemployed and if there is a fall<br \/>\nin consumer spending it will have the same effect as there will be less demand<br \/>\nfor goods and services causing a<br \/>\nfall in sales for Tesco. A fall in consumer spending will affect some business<br \/>\nmore than others. When incomes fall, we tend to reduce demand for luxury goods<br \/>\nsuch as more expensive items rather than Tesco home brand items. Firms selling<br \/>\nmandatory items such as bread and milk will not be affected. Tesco sell both<br \/>\nitems so may see a decrease in their luxury item goods.<\/p>\n<p>In response to falling demand,<br \/>\nbusinesses such as Tesco often look for ways to retain business. The fight for<br \/>\nmarket share becomes more intense and they will often start price wars which<br \/>\nare good for consumers but reduce profitability for Tesco as they aren\u2019t making<br \/>\nas high as returns on their products and services. This is an example of how a<br \/>\ndecrease in government spending indirectly affects Tesco.<\/p>\n<p>Examples of ways in which Tesco are<br \/>\nimpacted by different areas of government spending can be seen below.<\/p>\n<p><strong>Increased<br \/>\nspending on construction; <\/strong>this can allow for more of the UK population<br \/>\nto have safe and secure housing and most importantly, housing that they can afford.<br \/>\nIf people can afford their housing and have more money to spend on goods and<br \/>\nservices, Tesco will benefit here as more people can afford their goods and<br \/>\nservices and so sales increase. Increased spending on construction can also<br \/>\nimpact Tesco as they may have more access to open more stores across the<br \/>\ncountry as the government funds different building projects. This impacts Tesco<br \/>\nas they are able to expand and maximise their sales, profits and market share<br \/>\ntoo.<\/p>\n<p><strong>Increased<br \/>\nspending on mental health; <\/strong>just as Theresa May plans to increase the<br \/>\nspending on mental health, this will have implications for Tesco. If there are<br \/>\nmore resources and help available in relation to mental health, it should allow<br \/>\nfor a more healthy population. As a result of this, Tesco staff will have more<br \/>\nmentally healthy staff. This will impact Tesco as they will have to pay less<br \/>\nsick pay, have staff which are happier and more secure in their jobs and have a<br \/>\nmore productive and efficient workforce. This will mean Tesco will have to recruit<br \/>\nless as they have a healthy workforce and this will save them money \u2013 allowing<br \/>\nthem to increase their profits as a result.<\/p>\n<p><strong>Increased<br \/>\nspending on renewable energy schemes; <\/strong>at the end of 2016, the UK government<br \/>\nannounced their plans to increase spending on renewable energy schemes. For<br \/>\nexample, they plan to have enough renewable electricity to power around one<br \/>\nmillion homes and businesses and reduce carbon emissions by around 2.5 million<br \/>\ntonnes per year from 2021\/22 onwards.<\/p>\n<p>This will have an impact on Tesco as<br \/>\ntheir stores become more efficient as a result of government spending. This<br \/>\nwill impact Tesco by allowing them to reduce their costs and increase their<br \/>\nprofits. It can also impact them as customers save money on their homes and<br \/>\nhave a higher disposable income to spend money with Tesco, resulting in Tesco<br \/>\nincreasing their sales.<\/p>\n<p><strong>Increased<br \/>\nspending on roads and transport; <\/strong>infrastructure projects such as<br \/>\nroads, airports, water systems and telecommunications are the foundations of<br \/>\nstronger economies. They have a huge multiplier effect as when you put up a<br \/>\npower plant; you not only generate employment directly through construction and<br \/>\noperations at the power plant, but also create an industrial base around the<br \/>\nplant who would want to tap the power. These industries would get more<br \/>\nentrepreneurs and employ more labour. This increase in employment in an area<br \/>\nmeans that people have jobs and will have more money to spend on goods and<br \/>\nservices in the local area. So, for example if a Tesco store was nearby, this<br \/>\nwould attract the worker to purchase from the store. This shows that government<br \/>\nspending in an unrelated area to Tesco has an impact on them as they can<br \/>\nincrease their sales and the money they generate. Infrastructure is seen as the<br \/>\nkey to wiping poverty.<\/p>\n<p><strong>Capping benefit payments; <\/strong>reducing the amount of money given to families out of work, or single parent families will certainly reduce the disposable income that they have. This will mean they have less money to spend on goods and services across many different industries. The benefit cap was introduced at \u00a326,000 per year (\u00a3500 per week) which is the average income of a family in the UK. For single people with no children it was set at \u00a318,200 per year (\u00a3350 per week). From autumn 2016 it will be reduced to \u00a320,000, except in London where it will be reduced to \u00a323,000. Capping benefit payments indirectly impact Tesco as government spending is lower in this area and people will not be able to afford some of the goods and services which Tesco have on offer. In particular, the luxury products which Tesco offer will decline with regards o sales and this will impact<br \/>\nTesco\u2019s profits too.<\/p>\n<p>More areas of government spending and their impacts<br \/>\non Tesco will be looked at below. <\/p>\n<h3>Public services via central and local government agencies<\/h3>\n<p>Public services are any services<br \/>\nwhich are provided by or funded by the government and include health and<br \/>\neducation. Many different public services are run by both central and local<br \/>\ngovernment for example the NHS is run centrally, but local areas have their own<br \/>\nindividual trusts that look after the care needs in their area. In England,<br \/>\nspending is introduced through central government departments such as the<br \/>\ndepartment of health, local governments such as the City of London council and<br \/>\ncentral and local government agencies such as DVLA.<\/p>\n<p>In Northern Ireland, spending is<br \/>\ncarried out by Northern Ireland Departments such as the Northern Ireland<br \/>\nExecutive, local government such as Newry Mourne and Down District Council as<br \/>\nwell as Northern Ireland government agencies such as the Housing Executive.<br \/>\nThese different departments will be allocated spending budgets by the<br \/>\ngovernment.<\/p>\n<p>The Audit Commission was replaced by<br \/>\nPublic Sector Audit Appointments Ltd, National Audit Office, Financial Reporting<br \/>\nCouncil and Cabinet Office in April 2015. These are central government agencies<br \/>\nthat monitor local government agencies to compare how they are doing and how<br \/>\neffectively and efficiently government money is being spent.<\/p>\n<p>Public services impact Tesco as they<br \/>\nmay offer grants to improve stores across the UK. For example, Newry Mourne and<br \/>\nDown District Council may offer a cleanup operation around a Tesco store or<br \/>\noffer them a grant to improve the sight of one of their stores. This will<br \/>\nimpact Tesco as their business becomes better for their customers and is free<br \/>\nto them of course which does not eat into their profits.<\/p>\n<h3>Private and voluntary sector business<br \/>\norganisations<\/h3>\n<p>Private and voluntary sector business<br \/>\norganisations are also impacted by government spending. The government always<br \/>\nhas different investment plans for different sectors and if the government<br \/>\ninvests in a particular sector, this leads to business being generated for the<br \/>\nprivate sector. This is because when a new business opens in a particular area,<br \/>\njobs are created and other local businesses benefit from the increased trade in<br \/>\nthe area. Tesco are impacted here as the government spend money to develop the<br \/>\nsites in which they wish to open a new store within. For example, if Tesco have<br \/>\nplans to open a new store in Northern Ireland, the government may spend money<br \/>\nto clear the sight which they are to start building on. This will reduce the<br \/>\ncosts for Tesco and will benefit them in the future.<\/p>\n<p>As well as the private sector,<br \/>\ngovernment spending also affects the voluntary sector which includes charities<br \/>\nand other voluntary organisations. This is because grants are more readily<br \/>\navailable for such organisations when government spending is high. This allows<br \/>\nvoluntary organisations to benefit greatly from the increased capital the<br \/>\ngovernment is supplying them with. If spending is cut, these organisations may<br \/>\nstruggle to find other sources of finance. From 2009 and into the economic<br \/>\nrecession, voluntary organisations struggled as there were cutbacks in<br \/>\ngovernment spending and people did not have the disposable income to contribute<br \/>\nto their local charities.<\/p>\n<p>The level of spending in private and<br \/>\nvoluntary sector business organisations depends on the government\u2019s priorities<br \/>\nfor the UK and the policies they have in place.<\/p>\n<p>If the government increases spending<br \/>\nthis can impact directly and indirectly on private businesses. It impacts<br \/>\ndirectly if the government gives the business support in the form of loans or<br \/>\nadvice or buys directly from them such as taxi firms and computer<br \/>\nmanufacturers. This is because the government and the business are dealing with<br \/>\neach other without any intermediaries. It also impacts indirectly as it<br \/>\nincreases employment in the economy which may lead to an increase in demand as more<br \/>\npeople will be employed and subsequently have more money to spend. Increases in<br \/>\nwelfare payments will also impact on demand<br \/>\nfor a business\u2019 goods services indirectly as people have more disposable<br \/>\nincome. The opposite may happen if the government cuts back on spending. Tesco<br \/>\nare also impacted by government spending in the private sector as if they help<br \/>\nfinance a new store to open, it will create jobs in the local area and this<br \/>\nmeans the area becomes more affluent and unemployment levels decrease. This in<br \/>\nturn will mean more people have a higher disposable income and can actually<br \/>\npurchase more products and services from the Tesco store which positively<br \/>\nimpacts Tesco too. It is like a cycle whereby the government spend money in a<br \/>\nbusiness and it benefits the whole community and economy as a result.<\/p>\n<p>Voluntary organisations such as<br \/>\ncharities and community groups will be directly affected by government spending<br \/>\nas there will be more government grants available for such organisations when<br \/>\ngovernment spending is high and less grants available when the government cuts<br \/>\nback on spending. They will also be affected indirectly by government spending<br \/>\nas members of the public will have more money to donate to them if government<br \/>\nspending is high due to more people being employed and little money to donate<br \/>\nif government spending is cutback due to less people being employed. Decreases<br \/>\nin government spending will also indirectly affect them as the government will<br \/>\nnot be providing the same amount of services and there will be more need for<br \/>\nhelp from charities such as homeless charities.<\/p>\n<h3>Deficit funding<\/h3>\n<p>Deficit funding is where the<br \/>\ngovernment spends more than what it takes in so it is losing money. This means<br \/>\nit must borrow money from banks, government bonds or through selling assets.<\/p>\n<p>The difference between spending and<br \/>\nmoney received in any given year is known as the Public- Sector Net Cash<br \/>\nRequirement (PSNCR). As the PCSNR builds up over the years \u2013 it is then known<br \/>\nas the national debt. Britain still owes money from the Second World War and<br \/>\nthis shows the scale of debt which some economies are in.<\/p>\n<p>If there are not enough people working to pay taxes, the government will need to boost spending to increase aggregate demand and try to break this trend. If the government\u2019s borrowing and debts become too large, it may become impossible for the government to pay the money back. This is referred to<br \/>\nas \u2018defaulting on a debt\u2019 and with economies so interlinked, other countries<br \/>\nmay be affected.<\/p>\n<p>Tesco are impacted by deficit funding<br \/>\nas this implies lower taxes which means people have less to pay and have a<br \/>\nhigher disposable income. This may lead to people buying more when they shop in<br \/>\nTesco and this impacts Tesco through increased sales and profits. However, in<br \/>\nthe future the government may have to increase taxes or cut spending in order<br \/>\nto reduce the deficit and this may cause reduced incentives to work meaning<br \/>\nthere are more people unemployed.<\/p>\n<p>This results in people having less<br \/>\nmoney to spend and so Tesco\u2019s sales and profits fall which have a huge impact<br \/>\non the entire organisation.<\/p>\n<p>If the government sells more bonds<br \/>\nthis is likely to cause interest rates to increase. This is because they will<br \/>\nneed to increase interest rates in order to attract investors to buy the extra<br \/>\ndebt. If government interest rates increase, this will push up other interest<br \/>\nrates as well which mean more people will save their money and not borrow. This<br \/>\nleads to decreased spending and as a result Tesco may be impacted by a slowdown<br \/>\nin sales and a decrease in customers.<\/p>\n<h3>Government spending and the multiplier<br \/>\nmechanism<\/h3>\n<p>Increases in government spending have<br \/>\na multiplying effect on the economy. As government spending stimulates demand,<br \/>\nit multiplies and creates a lot of demand in other sectors.<\/p>\n<p>This then encourages business to<br \/>\ninvest to meet the growing demand for their products and services. Likewise, if<br \/>\nthe government cuts back on spending, the demand in the economy decreases which<br \/>\nmeans that businesses feel uncertain about investment as their confidence in<br \/>\nthe economy is reduced. They may cut back on the business\u2019 production of<br \/>\nproducts and services.<\/p>\n<p>Below shows the multiplier effect in action;<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" alt=\"\" class=\"wp-image-97392\" sizes=\"(max-width: 447px) 100vw, 447px\" src=\"https:\/\/205207-619339-raikfcquaxqncofqfm.stackpathdns.com\/wp-content\/uploads\/2019\/03\/effect-action.jpg\" srcset=\"https:\/\/205207-619339-raikfcquaxqncofqfm.stackpathdns.com\/wp-content\/uploads\/2019\/03\/effect-action.jpg 447w, https:\/\/205207-619339-raikfcquaxqncofqfm.stackpathdns.com\/wp-content\/uploads\/2019\/03\/effect-action-300x109.jpg 300w\"\/><\/figure>\n<p>The government may budget for a<br \/>\nsurplus or deficit in any given year.<\/p>\n<p><strong>Budget<br \/>\ndeficit <\/strong>\u2013 when a government budgets to spend more than it receives in the<br \/>\nform of taxes in each year. Spending is greater than taxes received here.<\/p>\n<p><strong>Budget<br \/>\nsurplus <\/strong>\u2013 when a government budgets to take in more in the form of taxes<br \/>\nin each year than it spends. Taxes received are greater than spending here.<\/p>\n<p><strong>Balanced<br \/>\nbudget <\/strong>\u2013 when the government budgets to spend the same amount as it<br \/>\nreceives in taxes. Taxes and spending are equal here.<\/p>\n<p>In the current climate, the<br \/>\ngovernment mostly budget for a deficit because there is so much need for<br \/>\nspending in the economy. Although, before George Osborne left office his plans<br \/>\nwere to cut back on spending and get back to a budget surplus by 2020 and<br \/>\nreduce the debt they inherited from the previous Labour Government. Theresa May<br \/>\nstill wants to follow this but her target surplus is much lower. As Prime<br \/>\nMinister she believes people must live within their means.<\/p>\n<p>Tesco are impacted by the different<br \/>\nbudgets in which the government set in relation to spending. If the government<br \/>\nbudget for a deficit, Tesco may benefit. This is because the government will be<br \/>\nspending more on businesses and so demand increases for Tesco\u2019s goods and<br \/>\nservices. This will allow Tesco to increase sales, profits and will be in a<br \/>\nbetter position to expand. Sometimes the effect of a fall in spending is hard<br \/>\nto predict. If it is a temporary blip, it is not serious for businesses.<br \/>\nHowever, if an initial fall in spending causes rising unemployment and other<br \/>\npeople to reduce spending, the initial fall can become magnified and cause a<br \/>\nserious decline in Tesco\u2019s sales and profits and in general economic growth<\/p>\n<p>An example of the multiplier effect<br \/>\nimpacting Tesco would include an increase in welfare payments. This government<br \/>\nspending indirectly impacts on Tesco as more people have a higher disposable<br \/>\nincome. They can use this disposable income on whatever they like and it is<br \/>\nlikely that they will purchase more luxury products which Tesco has to offer<br \/>\nsuch as luxury food or cleaning equipment. This has a multiplier effect across<br \/>\nthe economy as it will lead to increased spending, an increase in aggregate<br \/>\ndemand and Tesco benefit here in the form of increased sales and profits and<br \/>\nwill find that the company is in a much better position financially and<br \/>\neconomically.<\/p>\n<h3>Local impacts of funding<\/h3>\n<p>As well as funding regional areas,<br \/>\ngovernments also spend money in local areas. Many types of local funding are<br \/>\nnow carried out on what is known as a bid basis. For example, schools and<br \/>\ncolleges must submit tenders and bid for government money. It is not handed out<br \/>\nfreely.<\/p>\n<p>SRC must bid for extra funding and<br \/>\nfor the delivery of different projects, private organisations such as farmers<br \/>\nmust bid for government funding and charities and voluntary organisations such<br \/>\nas community groups have to bid for funding. Individuals must complete and<br \/>\nsubmit application forms for allowances and grants such as hardship funds,<br \/>\ndisability allowances and family allowances. This should help to reduce<br \/>\ngovernment spending as people and businesses now must put in more effort in<br \/>\norder to get government assistance.<\/p>\n<p>Tesco are impacted by local<br \/>\ngovernment funding. If Newry Mourne and Down District Council offered a local<br \/>\nstore a grant which would help them develop a larger car parking area for<br \/>\nexample, Tesco would benefit greatly here in the form of more customers being<br \/>\nable to visit the store. This would be at a zero cost for Tesco and they would<br \/>\nbe able to grow and become larger as a result. Local funding for local<br \/>\nbusinesses has a great impact for business and the wider community and Tesco<br \/>\nwould certainly be positively impacted here.<\/p>\n<h3>Private Finance Initiatives<\/h3>\n<p>Private Finance Initiatives are a way<br \/>\nin which the government increases spending in conjunction with businesses. This<br \/>\nalso helps the government to reduce their borrowing requirements. It involves<br \/>\nawarding contracts to private sector organisations and businesses who provide a<br \/>\nservice that was previously provided by the public sector. An example would be<br \/>\nthe councils working with private contractors to carry out a building project<br \/>\nof new homes. This would benefit local people as more housing would be<br \/>\nprovided.<\/p>\n<p>In some circumstances, PFIs mean that<br \/>\nan asset such as a school or hospital remains owned by the private sector and<br \/>\nmoney needs to be paid to that owner to use those facilities over a period of<br \/>\ntime. The government may buy the property back off the private sector to<br \/>\ngenerate revenue for themselves in the long run.<\/p>\n<p>PFIs would indirectly impact on<br \/>\nTesco. If we take the example above of the council working with private<br \/>\ncontractors to carry out a building project of new homes, this would benefit<br \/>\nlocal people as more housing would be provided. If more housing is being<br \/>\nprovided, it may draw people into that particular area. Once in the area, they<br \/>\nmay shop at their local Tesco store which will allow Tesco to access a range of<br \/>\nnew customers and increase their sales and profits too.<\/p>\n<h2>Impact of changes in the economic environment on Tesco<\/h2>\n<h3>Introduction<\/h3>\n<p>Government spending has many different<br \/>\nimpacts on Tesco which have been explained above. This report will go into an<br \/>\nextensive evaluation on the impact of changes in the economic environment on<br \/>\nTesco. Research will be carried out on how the company has been impacted as<br \/>\nwell as how other competitors in the same market have been impacted by the same<br \/>\nchanges.<\/p>\n<h3>Findings<\/h3>\n<p>The<br \/>\neconomic environment is the external factors that influence the business. The<br \/>\neconomy is made up of buyers, investors, sellers, the government and bankers.<br \/>\nThe economic factors have the largest impact on any business. A stable economy<br \/>\nis important for Tesco because;<\/p>\n<ul>\n<li>Prices stay stable and do not vary<\/li>\n<li>There is steady growth within the business<\/li>\n<li>Unemployment figures remain constant<\/li>\n<li>Exchange rates stay stable<\/li>\n<li>There is good customer confidence and they<br \/>\nbuy more goods.<\/li>\n<\/ul>\n<figure class=\"wp-block-image\"><img decoding=\"async\" alt=\"\" class=\"wp-image-97393\" sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"https:\/\/205207-619339-raikfcquaxqncofqfm.stackpathdns.com\/wp-content\/uploads\/2019\/03\/economic-plan-1024x709.jpg\" srcset=\"https:\/\/205207-619339-raikfcquaxqncofqfm.stackpathdns.com\/wp-content\/uploads\/2019\/03\/economic-plan-1024x709.jpg 1024w, https:\/\/205207-619339-raikfcquaxqncofqfm.stackpathdns.com\/wp-content\/uploads\/2019\/03\/economic-plan-300x208.jpg 300w, https:\/\/205207-619339-raikfcquaxqncofqfm.stackpathdns.com\/wp-content\/uploads\/2019\/03\/economic-plan-768x532.jpg 768w, https:\/\/205207-619339-raikfcquaxqncofqfm.stackpathdns.com\/wp-content\/uploads\/2019\/03\/economic-plan.jpg 1085w\"\/><\/figure>\n<p>The business<br \/>\nenvironment can change frequently which change the ways in which business<br \/>\noperate on a daily basis. Changes that can occur with changes in the economic<br \/>\nenvironment include an increase in the price of goods and services, changes in<br \/>\ncredit available and the cost of credit to businesses, changes in the supply of<br \/>\nlabour, government policy changes and changes in business legislation.<\/p>\n<p>An evaluation on the impact of different changes in the economic environment on Tesco will be looked at below.<\/p>\n<p><strong>Changes<br \/>\nin unemployment rates; <\/strong>high levels of unemployment have different<br \/>\nimpacts on business. High unemployment means less people are working in the<br \/>\neconomy and so they have lower incomes meaning they have less money to spend on<br \/>\ngoods and services. This reduces the demand for goods and services especially<br \/>\nluxury goods and services. This will impact negatively on Tesco as products<br \/>\nwhich may have been in high demand a while ago may no longer be in demand due<br \/>\nto more people being unemployed and this reduces Tesco\u2019s sales and subsequently<br \/>\nprofits too.<\/p>\n<p>When there are high levels of<br \/>\nunemployment, Tesco may find it easier to recruit and be able to pay lower<br \/>\nrates of pay as there will be a higher number of people looking for work and so<br \/>\ntaking advantage of this, Tesco may be able to increase their profits. Low<br \/>\nlevels of unemployment also have different impacts on businesses. This means<br \/>\nthat more people are working in the economy and so they have higher incomes and<br \/>\nso are able to spend more on goods and services. This should increase the<br \/>\ndemand for goods and services, particularly luxury goods and services. This is<br \/>\ngood for Tesco as more people will have a higher disposable income which can be<br \/>\nspent with them. This will mean that more products and services will be<br \/>\npurchased and so sales and profits begin to increase. Tesco may find it more<br \/>\ndifficult to recruit however and they may have to pay higher rates of pay to attract<br \/>\nstaff as there will be less people looking for work. Tesco may also have to<br \/>\nlook at recruiting workers from abroad as there simply isn\u2019t enough of a<br \/>\nselection in the UK. This can lead to increased costs and a reduction in<br \/>\nTesco\u2019s profits. Unemployment rate is one of the factors that affect the<br \/>\ncompany\u2019s profitability. Unemployment decreases the demand for its products and<br \/>\nservices and in the end, its profitability and this is something which Tesco is good at dealing with as<br \/>\nthey both luxury and cheaper goods to suit the everyday customer.<\/p>\n<p><strong>Changes in national living wage; <\/strong>increases to a national minimum wage benefit workers by allowing them to earn more money for the same work. That\u2019s usually good for the workers, but it can be challenging for Tesco because it increases costs. Labour costs are usually a company\u2019s greatest expense. Some corporations argue that they cannot compete against companies located in countries offering a much lower minimum wage. That can result in a company transferring many job functions to foreign countries such as Tesco responding by sourcing products from countries such as China and sourcing their clothing stock from places such as India. The introduction of the national living wage in April 2016 resulted in a cost for Tesco which would exceed \u00a3500 million by 2020. This shows that Tesco have been paying their staff lower than this in the past and so<br \/>\ntheir ability to adapt to a change in this economic factor isn\u2019t very good as<br \/>\nthe company has now had to endure a serious increase in financial costs.<\/p>\n<p><strong>Renewable<br \/>\nenergy schemes; <\/strong>through the government introducing policy in<br \/>\nrelation to renewable energy, they pay energy users who invest in small-scale,<br \/>\nlow-carbon electricity generation systems for the electricity they generate and<br \/>\nuse and provide incentives for businesses to install renewable heating instead<br \/>\nof fossil fuels. This has implications for Tesco and Tesco respond. Tesco have<br \/>\na long term goal to become a zero carbon retailer by 2050 and they have<br \/>\nzero-carbon stores to meet this goal. Their special stores use a mix of<br \/>\nenvironmentally-friendly design, materials and technologies to ensure that all<br \/>\nenergy- consuming equipment, no matter how big or small, is as efficient as<br \/>\npossible \u2013 whether that be the refrigeration system or the hand drier in the<br \/>\ntoilets. Tesco are impacted positively by renewable energy schemes as it will<br \/>\nsave the company costs and expenses. This will allow them to maximise their<br \/>\nprofits which can lead them to expand much more easily. The impact of an increase<br \/>\nin renewable energy schemes is definitely good for Tesco and as more schemes<br \/>\nare introduced, Tesco are left with more incentives to save money.<\/p>\n<p><strong>Increasing<br \/>\nuniversity fees; <\/strong>there was a 17% fall in the number of first<br \/>\nyear undergraduates at UK universities in the first year of higher tuition<br \/>\nfees. This doesn\u2019t look good for the economy as it would seem that fewer people<br \/>\nwould graduate in specialised industries. However, it may have benefitted Tesco<br \/>\nas more people looked for full time employment instead of going to university.<br \/>\nThis impacted Tesco as they had a greater number of people to choose from when<br \/>\nrecruiting. They also had the option of more skilled people when recruiting as<br \/>\nthey may have had a 17% increase in people to choose from. However, the<br \/>\nincrease in university fees may have negative also be negative for Tesco.<br \/>\nIf people graduate with greater debt with their education fees, they may spend<br \/>\nless so that they are able to pay off their debt. These cuts in their spending<br \/>\nmay be with Tesco as they attempt to save money and this ultimately damages<br \/>\nTesco sales which they will have to look for ways to improve again. So,<br \/>\nincreasing university fees is good and bad for Tesco. Tesco will have to ensure<br \/>\nthat they look out for trends in the shopping patterns of university graduates<br \/>\nand adapt their business operations accordingly such as lowering or increasing<br \/>\nprices of particular goods and services.<\/p>\n<p><strong>The<br \/>\nrecession; <\/strong>recession occurs when people involved in business become more<br \/>\ncautious and customers cut back on spending and start to save more, looking for<br \/>\ndeals and discounts in stores. Recession means that there are less goods and<br \/>\nservices being produced from one quarter to the next. An economy is generally<br \/>\nconsidered to be in recession if GDP has contracted for two consecutive<br \/>\nquarters. Manufacturers and sellers cut back on their orders, produce fewer<br \/>\ngoods and start to cut back costs in general, including by laying off workers<br \/>\n(just as Bombardier and Caterpillar announced in 2016) and reducing hours of<br \/>\nwork. Just like growth, this leads to a ripple effect in the economy. Due to<br \/>\nthe fact that economic recessions will put Tesco\u2019s customers under money<br \/>\nworries, they will only be purchasing items which they really need, more so<br \/>\nthan what they want as they simply cannot afford to treat themselves to the<br \/>\nmore luxurious items. For example, Tesco customers may want some luxuries such as chocolate, sweets and crisps. However, they only<br \/>\nneed basic and essential items such as toothpaste, break, milk and household items.<\/p>\n<p>Tesco have been successful in the<br \/>\nrecession which began at the end of 2007 as they have offered their own brand<br \/>\nof products, which is a cheaper alternative for customers. Recession has had a<br \/>\nbig ripple effect on the economy, which has led to banks not lending money,<br \/>\nhigher unemployment figures and businesses closing down. A recession will make<br \/>\nbusiness demand decrease, as well as the demand for products and services<br \/>\ndecrease. This affects the departments in Tesco greatly and they need to ensure<br \/>\nthey remain competitive during desperate times for the consumer. During the<br \/>\ndecline of global retail overall sales, Tesco have still shown a growth of 13%<br \/>\nwithin the UK markets and 26% internationally .They have won several retail<br \/>\nawards for keeping up their standards and providing best retails services<br \/>\nkeeping in mind their corporate responsibilities . They are continuously<br \/>\nexpanding with propositions of opening several stores on an international<br \/>\nlevel. This shows that they have done excellent as they were largely impacted<br \/>\nby the recession which was detrimental to the economic environment over the<br \/>\npast number of years. According to the London Evening Standard newspaper,<br \/>\nfinance director Laurie McIlwee said that \u201cyes\u201d, Tesco have coped<br \/>\nvery well in the economic recession in 2010 \u2013 adding that customers got used to<br \/>\nrelying on Tesco for practically everything, becoming addicted to the club-card<br \/>\nand the free car parking along the way. During the recession, Tesco were also<br \/>\nmore successful than any other competitor such as Sainsbury\u2019s and ASDA as they<br \/>\nremained the dominant player in the UK with a market share of more than 30%.<\/p>\n<p><strong>Rates revaluations; <\/strong>the UKs largest supermarkets are being hit with increasingly disproportionate hikes in business rates that will spell more pain for them in times of recovering from an economic<br \/>\nrecession. Tesco, Sainsbury\u2019s, ASDA and Morrison\u2019s face an additional bill of<br \/>\nmore than \u00a3110,000 per superstore in 2015-16 compared with 2010-11. This occurs<br \/>\nat a time when small businesses have seen their bills reduced. This increase of<br \/>\nrates for only the bigger supermarkets is seen as unfair and has many<br \/>\nimplications for Tesco. This means increasing Tesco\u2019s rates which is an<br \/>\nincrease to their expenses and takes away capital which can be used to expand<br \/>\nand which eats up the company\u2019s profits. It may also impact Tesco as they have<br \/>\nto increase their price of goods and services to cope with these increased<br \/>\nbusiness rates and so consumers stop shopping with them and go to other smaller<br \/>\nstores who don\u2019t have to increase their prices to cope with an increase in<br \/>\nbusiness rates. This is bad for Tesco and has a negative impact for them a<br \/>\npremise which they\u2019ve owned for a few years and were able to make a healthy<br \/>\nprofit on, the rates are now changing and their profits may be diminished in a<br \/>\nway. Tesco have coped well though as the company is always expanding so they<br \/>\nhave subsidised these rising rate expenses and the business have grown.<\/p>\n<p><strong>Changes<br \/>\nin tax rates; <\/strong>an increase in corporate income taxes has a<br \/>\ndirect effect on a business such as Tesco. A tax increase on business profits<br \/>\nhurts a company\u2019s overall financial performance. When business tax rates<br \/>\nincrease, Tesco may respond by raising prices on goods and services. Increase<br \/>\nin taxation is the largest source of revenue for the government is income tax<br \/>\nand is levied against interest, dividends, capital gains and income. Therefore,<br \/>\nthe highest earners end up paying high taxes. However, increase in tax affects<br \/>\nconsumer spending in different ways including. When taxes are placed on<br \/>\nspecific products, consumers tend to look for substitutes that are available at<br \/>\ncheap prices. This has implications for Tesco as they may have to reduce the<br \/>\nprices of their products to compete with other competitors such as ASDA and<br \/>\nLIDL. This also impacts Tesco as a smaller price being charged means profits<br \/>\naren\u2019t as high as the firm would wish for them to be. It is imperative to note<br \/>\nthat consumer spending is often two thirds of GDP. Therefore, increasing taxes<br \/>\nreduces disposable income. This means that consumers will only spend the money<br \/>\nthey have on essentials and no additional products. With an increase in tax,<br \/>\nconsumer spending reduces and causes fluctuations in the economy because of the<br \/>\nattitudes of clients or consumers towards the state of economy. This also has<br \/>\nimplications for Tesco who may have to compete in an economy which is<br \/>\nstruggling and so they will struggle too with imports and daily running of<br \/>\ntheir stores. It is clear that rising tax rates have negatively affected Tesco<br \/>\nas it greatly increases their expenses and this subsequently reduces the<br \/>\nprofits the company makes which are essential to have for expansion of the<br \/>\ncompany. However, if we look at Tesco compared to other competitors such as ASDA<br \/>\nor LIDL, they are the fastest growing supermarket and have clearly coped the<br \/>\nbest with increases in tax rates in the past.<\/p>\n<p>To continue providing the certainty<br \/>\nthat businesses need to make their long-term investments, the government is<br \/>\nrecommitting to the business tax road map and the principles that it sets out.<br \/>\nThis includes cutting the rate of corporation tax to 17% by 2020 and reducing<br \/>\nthe burden of business rates by \u00a36.7 billion over the next 5 years. This has<br \/>\npositive implications for Tesco as their tax is reduced and so they have the<br \/>\nopportunity to use such capital on daily operations or even to expand, which<br \/>\notherwise would have been paid in tax. This also impacts Tesco as they are able<br \/>\nto maximise their profits even further as an expense has been significantly reduced.<\/p>\n<p>This may enable the company to invest<br \/>\nin other areas as seen in the past such as insurance and clothing. Another<br \/>\nimplication of this reduction in corporation tax is a better opportunity for<br \/>\nTesco to import goods from abroad as they are paying less tax on the money they<br \/>\nare making and so can afford to import in greater volumes for cheaper prices.<br \/>\nTesco are currently doing this very successfully and a lower tax rate would<br \/>\nonly help them even further as their costs reduce and profits increase. This<br \/>\nwould be excellent for Tesco as they strive to remain as the leading<br \/>\nsupermarket in the UK in the following years.<\/p>\n<p><strong>Changes in government spending; <\/strong>If different areas of government spending are cut, then the UK\u2019s productive capacity may suffer in the long term. Cutting spending in roads and transport may mean these areas become insufficient for use and can restrict people travelling to and from places. Tesco customers may not be able to use roads which they deem too dangerous due to insufficient repair and this has implications for Tesco as they lose customers and subsequent sales. It may also mean that Tesco cannot import products from other countries if transport isn\u2019t appropriate to do so which may mean they have to source their goods and services more locally and at a higher cost. However, capital spending is often the easiest place to make spending cuts, because in the short term, people don\u2019t lose out. If you reduce pensions, people notice straight away. If you reduce capital investment, it will affect people 10 or 20 years in the future. If the government make spending cuts to pensions for example, people may immediately try to save<br \/>\nmoney for themselves in the future. This attempt as saving money for people may<br \/>\nbe reducing their spending on their weekly groceries and so ultimately Tesco<br \/>\nsuffer with a decrease in their sales. The government must ensure they give<br \/>\ndifferent policies equal attention as changing one will ultimately change<br \/>\nanother and this has implications for Tesco such as having to decrease their<br \/>\nprices of their products and services so that people can afford to buy them. In<br \/>\nthe fiscal year ending in 2016, total UK public spending was \u00a3761.9 billion. In<br \/>\nthe fiscal year ending in 2017, the UK public spending is expected to be<\/p>\n<p>\u00a3784.1 billion. This will be great<br \/>\nfor Tesco as there will almost certainly be money directly or indirectly spent<br \/>\nwhich will aid the company. For example, as Theresa May plans to increase<br \/>\nspending in mental health, it will allow for a more healthy population and<br \/>\nworkforce which will impact on Tesco positively. Tesco have coped well in the<br \/>\npast with decreases in government spending though as they have so much profit<br \/>\nto reinvest in the company and so are very successful in this area of the<br \/>\neconomic environment.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" alt=\"\" class=\"wp-image-97394\" sizes=\"(max-width: 733px) 100vw, 733px\" src=\"https:\/\/205207-619339-raikfcquaxqncofqfm.stackpathdns.com\/wp-content\/uploads\/2019\/03\/public-spending.jpg\" srcset=\"https:\/\/205207-619339-raikfcquaxqncofqfm.stackpathdns.com\/wp-content\/uploads\/2019\/03\/public-spending.jpg 733w, https:\/\/205207-619339-raikfcquaxqncofqfm.stackpathdns.com\/wp-content\/uploads\/2019\/03\/public-spending-300x197.jpg 300w\"\/><\/figure>\n<p><strong>Apprenticeship<br \/>\nschemes; <\/strong>the UK government work alongside Tesco to deliver apprenticeship<br \/>\nschemes which aim to tackle youth unemployment. In 2012, Tesco announced that<br \/>\nthey will create 20,000 new jobs in the UK over the next two years in a bid to<br \/>\ntackle growing youth unemployment. These schemes are much cheaper for Tesco as<br \/>\nthey don\u2019t have to go through the whole recruitment process which is expensive<br \/>\nfor them. In addition to this, Tesco can keep on the apprentices if they show<br \/>\npotential which means Tesco have highly skilled workers for a cheap price. This<br \/>\nimpacts Tesco as they are able to maximise their productivity and skills of<br \/>\ntheir workforce and as the government is directly funding this, Tesco have<br \/>\nlittle expense. This allows them to increase their profits at a very small<br \/>\nprice as well as have the opportunity to gain themselves an excellent corporate<br \/>\nsocial responsibility and corporate image. Tesco have been fantastic in past at<br \/>\ndelivery these apprenticeships schemes and more than 72% of those enrolled end<br \/>\nup fulfilling a permanent job with the company. This shows Tesco\u2019s excellent<br \/>\nability to deliver on government-funded schemes and the benefits for themselves<br \/>\nhave been outlined above.<\/p>\n<p><strong>Leaving the EU; <\/strong>in the immediate aftermath of the Brexit vote, <a href=\"https:\/\/www.ukessays.com\/dissertation\/examples\/politics-examples\/brexit-reasons-and-implications-8254.php\" target=\"_blank\" rel=\"noopener\">there was uncertainty<\/a> which led to a dampening of consumer confidence and this impacted Tesco. Nobody knew the government\u2019s plans with regard to spending and this led to fear in the general public. Psychology of the consumer is critical and this was unfavourable by consumers. Consumers did not \u2013 and many still do not \u2013 feel \u2018better off\u2019. For retailers such as Tesco, there was also uncertainty of the direction of their business. It prevented Tesco from making any huge plans as retailers didn\u2019t know how bad the exchange rate was going to turn out to be. Brexit also impacted Tesco as the cost of goods purchases overseas will effectively become more expensive and as a result, some of the burden may eventually need to be shared with consumers in the form of increased prices for goods and services. This will further impact Tesco as many of their customers stop purchasing with them and this means Tesco\u2019s sales fall and so do their profits. They may also lose many customers to other competitors who may be able to offer products which they source locally at a lower price.<\/p>\n<p>In the immediate aftermath of the<br \/>\nreferendum, I think Tesco didn\u2019t do as well as they should have. Multinational<br \/>\nhousehold goods giant Unilever has reportedly demanded a 10 per cent price rise<br \/>\nin Tesco products, including those made in the UK, to offset the higher cost of<br \/>\nimported goods. The two companies had a huge price war on their products and<br \/>\nservices and although Tesco have got majority of their customers back, they<br \/>\nstill lost a proportion of them which shows they weren\u2019t exactly fully ready<br \/>\nfor the result of the referendum \u2013 which was shocking to many businesses across<br \/>\nthe country.<\/p>\n<p><strong>Pensions<br \/>\nschemes; <\/strong>under UK law, employers will have to provide<br \/>\na workplace pension for eligible staff by 2018. An<br \/>\nemployer\u2019s pension scheme can have a huge impact on the way a business<br \/>\noperates. Pension schemes can continue to be a cash drain on employers,<br \/>\nrestricting their ability to use working capital to grow the business. They<br \/>\nalso represent a significant risk for the employer and it is a risk managed by<br \/>\ntrustees who may not share the employer\u2019s risk management objectives. This can<br \/>\nweaken the balance sheet, limiting the organisation\u2019s ability to raise further<br \/>\ncapital. This has had an impact on Tesco as their pension deficit had risen to<br \/>\n\u00a34.2 billion in 2015. This shows they are<br \/>\nstruggling with the impacts of a pension scheme as the government have decided<br \/>\nthe employer should contribute too, as well as the employee and them. This has<br \/>\nactually put some companies out of business and has caused Tesco to consider<br \/>\npulling out of offering their employees\u2019 pension schemes. Tesco have definitely<br \/>\nstruggled with the idea of a compulsory pension to all employees which the<br \/>\ngovernment has introduced. This can be seen by their huge debt and inability to<br \/>\ncontinue offering everyone pensions due to the huge<br \/>\nimpact it has had on the company\u2019s profits. Tesco have been loyal to their<br \/>\nstaff up until now though as they have put pension packages in place.<\/p>\n<p><strong>Inflation; <\/strong>inflation means that the costs<br \/>\nfor Tesco will increase. For example, they will have higher energy bills,<br \/>\nhigher transport costs, higher costs for raw materials and higher cost of<br \/>\nservices such as internet services and insurance. Due to these increases in<br \/>\ncosts, Tesco must choose whether to pass on these costs to consumers in the<br \/>\nform of higher prices for products and services which may lead to a decrease in<br \/>\ndemand, or they can absorb the increase in costs and do not pass them on to the<br \/>\nconsumer. This means that profits for Tesco will fall so they must find other<br \/>\nways of trying to reduce costs. As costs are rising, Tesco must reduce their<br \/>\ncosts of production or the price they pay for goods and services to suppliers<br \/>\nto be able to compete with competitors such as ASDA and Sainsbury\u2019s and<br \/>\nsurvive. Tesco must ensure they plan for inflation as if they cannot pay their<br \/>\ndebts, the company could face bankruptcy. Changes in inflation rates creates<br \/>\nuncertainty for businesses and it is difficult for them to cost out contracts<br \/>\nand set their prices accurately and therefore Tesco\u2019s prices may have changed<br \/>\nwhen we compare the price of products and services today and five years ago.<br \/>\nTesco have coped well though with changes in inflation rates over the years as<br \/>\nthey have always remained a market leader with the largest market share and<br \/>\nbrand loyalty. They are quick to change prices of goods and services with<br \/>\nchanging inflation rates and this ability to adapt quickly to an ever- changing<br \/>\neconomic environment is an attribute to the company\u2019s international success.<\/p>\n<h2>Conclusion<\/h2>\n<p>This document went into a detailed<br \/>\nexplanation as to what government spending is and by referring to current<br \/>\nexamples, identified the impact of changes in government spending on Tesco. The<br \/>\ndocument then went into an extensive evaluation of the impact of many different<br \/>\nchanges in the economic environment on Tesco. To do this successfully, current<br \/>\narticles, newspapers, the internet and other media were looked at. Ways in<br \/>\nwhich Tesco may respond to these changes were also evaluated.<\/p>\n<h2>Recommendations<\/h2>\n<p>Tesco are a leading supermarket in<br \/>\nthe grocery industry and so there are little recommendations to make. The<br \/>\ncompany are extremely well prepared for different changes in the economic<br \/>\nenvironment and because of this preparation, they\u2019re ready for major changes<br \/>\nsuch as Brexit which has taken effect already and will begin to affect<br \/>\nbusinesses even more as 2017 goes on.<\/p>\n<h2>Bibliography<\/h2>\n<p><a href=\"http:\/\/www.ukpublicspending.co.uk\/\" target=\"_blank\" rel=\"noopener\">www.ukpublicspending.co.uk<\/a><br \/>\n(accessed on 10\/12\/2017)<\/p>\n<p><a href=\"http:\/\/www.economicshelp.org\/blog\/519\/economics\/public-spending-and-effect-on-business\/\" target=\"_blank\" rel=\"noopener\">http:\/\/www.economicshelp.org\/blog\/519\/economics\/public-spending-and-effect-on-business\/<\/a><br \/>\n(accessed on 10\/12\/2017)<\/p>\n<p>https<a href=\"https:\/\/www.gov.uk\/government\/news\/government-sets-out-plans-to-upgrade-uk-energy-\" target=\"_blank\" rel=\"noopener\">:\/\/w<\/a>ww<a href=\"https:\/\/www.gov.uk\/government\/news\/government-sets-out-plans-to-upgrade-uk-energy-\" target=\"_blank\" rel=\"noopener\">.g<\/a>o<a href=\"https:\/\/www.gov.uk\/government\/news\/government-sets-out-plans-to-upgrade-uk-energy-\" target=\"_blank\" rel=\"noopener\">v.uk\/government\/news\/government-sets-out-plans-to-upgrade-uk-energy-<\/a> infrastructure-and-increase-clean-energy-investment<br \/>\n(accessed on 10\/12\/2017)<\/p>\n<p><a href=\"http:\/\/www2.cipd.co.uk\/pm\/peoplemanagement\/b\/weblog\/archive\/2012\/03\/05\/tesco-targets-%20young-unemployed-with-20000-new-jobs-2012-03.aspx\" target=\"_blank\" rel=\"noopener\">http:\/\/www2.cipd.co.uk\/pm\/peoplemanagement\/b\/weblog\/archive\/2012\/03\/05\/tesco-targets-<br \/>\nyoung-unemployed-with-20000-new-jobs-2012-03.aspx<\/a> (accessed<br \/>\non 10\/12\/2017)<\/p>\n<p><a href=\"http:\/\/www.retailthinktank.co.uk\/whitepaper\/the-short-and-medium-term-impact-of-brexit-%20on-the-retail-sector\/\" target=\"_blank\" rel=\"noopener\">http:\/\/www.retailthinktank.co.uk\/whitepaper\/the-short-and-medium-term-impact-of-brexit-<br \/>\non-the-retail-sector\/<\/a> (accessed on 10\/12\/2017)<\/p>\n<p><a href=\"http:\/\/www.professionalpensions.com\/professional-pensions\/news\/2429390\/tesco-s-pension-\" target=\"_blank\" rel=\"noopener\">http:\/\/www.professionalpensions.com\/professional-pensions\/news\/2429390\/tesco-s-pension-<\/a> deficit-rises-to-gbp42bn-as-profits-halve<br \/>\n(accessed on 10\/12\/2017)<\/p>\n<p><a href=\"https:\/\/www.independent.co.uk\/news\/business\/news\/brexit-tesco-unilever-pound-value-%20slump-marmite-dollar-euro-currency-exchange-rate-a7358926.html\" target=\"_blank\" rel=\"noopener\">http:\/\/www.independent.co.uk\/news\/business\/news\/brexit-tesco-unilever-pound-value-<br \/>\nslump-marmite-dollar-euro-currency-exchange-rate-a7358926.html<\/a> (accessed<br \/>\non 10\/12\/2017)<\/p>\n<p><a href=\"https:\/\/www.standard.co.uk\/business\/how-tesco-managed-to-cash-in-as-the-recession-bit-hard-%206544382.html\" target=\"_blank\" rel=\"noopener\">http:\/\/www.standard.co.uk\/business\/how-tesco-managed-to-cash-in-as-the-recession-bit-hard-<br \/>\n6544382.html<\/a> (accessed<br \/>\non 10\/12\/2017)<\/p>\n<p>https<a href=\"http:\/\/www.uktradeinfo.com\/Pages\/Home.aspx\" target=\"_blank\" rel=\"noopener\">:\/\/w<\/a>ww<a href=\"http:\/\/www.uktradeinfo.com\/Pages\/Home.aspx\" target=\"_blank\" rel=\"noopener\">.u<\/a>k<a href=\"http:\/\/www.uktradeinfo.com\/Pages\/Home.aspx\" target=\"_blank\" rel=\"noopener\">tradeinfo.com\/Pages\/Home.aspx<\/a><br \/>\n(accessed on 10\/12\/2017)<\/p>\n<p>https<a href=\"http:\/\/www.delni.gov.uk\/\" target=\"_blank\" rel=\"noopener\">:\/\/w<\/a>ww<a href=\"http:\/\/www.delni.gov.uk\/\" target=\"_blank\" rel=\"noopener\">.delni.g<\/a>o<a href=\"http:\/\/www.delni.gov.uk\/\" target=\"_blank\" rel=\"noopener\">v.uk\/<\/a> (accessed on 10\/12\/2017)<\/p>\n<p>https<a href=\"https:\/\/www.gov.uk\/government\/organisations\/department-of-enterprise-trade-and-\" target=\"_blank\" rel=\"noopener\">:\/\/w<\/a>ww<a href=\"https:\/\/www.gov.uk\/government\/organisations\/department-of-enterprise-trade-and-\" target=\"_blank\" rel=\"noopener\">.g<\/a>o<a href=\"https:\/\/www.gov.uk\/government\/organisations\/department-of-enterprise-trade-and-\" target=\"_blank\" rel=\"noopener\">v.uk\/government\/organisations\/department-of- enterprise-trade- and-<\/a> investment (accessed<br \/>\non 10\/12\/2017)<\/p>\n<p><a href=\"http:\/\/ec.europa.eu\/regional_policy\/EN\/atlas\/programmes\/2014-2020\/united-kingdom\/2014uk16rfop003\" target=\"_blank\" rel=\"noopener\">http:\/\/ec.europa.eu\/regional_policy\/EN\/atlas\/programmes\/2014-2020\/united-kingdom\/2014uk16rfop003<\/a> (accessed<br \/>\non 10\/12\/2017)<\/p>\n<p>https<a href=\"https:\/\/www.theguardian.com\/business\/2015\/oct\/06\/tesco-will-pay-suppliers-more-quickly\" target=\"_blank\" rel=\"noopener\">:\/\/w<\/a>ww<a href=\"https:\/\/www.theguardian.com\/business\/2015\/oct\/06\/tesco-will-pay-suppliers-more-quickly\" target=\"_blank\" rel=\"noopener\">.t<\/a>h<a href=\"https:\/\/www.theguardian.com\/business\/2015\/oct\/06\/tesco-will-pay-suppliers-more-quickly\" target=\"_blank\" rel=\"noopener\">eguardian.com\/business\/2015\/oct\/06\/tesco-will-pay-suppliers-more-quickly<\/a><br \/>\n(accessed on 10\/12\/2017)<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Government spending may refer to any expenditure made by local, regional or national governments. In most countries, including the UK, government spending makes up a significant proportion of the GDP (Gross Domestic Product). Spending can be carried out in many different areas such as investments, loans, acquisitions and transfer payments. The main areas of UK [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8507,6794,8396],"tags":[5676,5686,5780,5294,5674,5677,5678,6403,4639],"class_list":["post-45678","post","type-post","status-publish","format-standard","hentry","category-do-my-homework-finance-examples","category-finance-examples","category-paper-writing-service","tag-1500-words-assessment-task","tag-ace-homework-tutors","tag-assignment-homework-help-answers","tag-bishops-writing-bureau","tag-create-a-2-4-page-resource","tag-create-powerpoint-include-harvard-referencing","tag-i-need-completed-essay-in-300-400-words","tag-write-a-3-5pg-paper","tag-write-a-page-assignment"],"_links":{"self":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/posts\/45678","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/comments?post=45678"}],"version-history":[{"count":0,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/posts\/45678\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/media?parent=45678"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/categories?post=45678"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/tags?post=45678"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}