Two interesting pieces of advice were given by the economist panel at this morning’s ICAEW Finance Directors conference.
1. Tony Greenham from the New Economics Foundation suggested that in developing economies such as the UK, low growth may be the norm. He suggested that one scenario FDs should run through their planning system is “what would happen if we ended up only growing 1% to 2% in the medium term?” This is the situation that countries such as Japan have faced.
2. Warwick Lightfoot, cabinet member Royal Borough of Kensington and Chelsea suggested that although the banking system may not fail, individual institutions may well do so. His top tip is to look at your risk as a corporation to having cash on deposit with certain institutions. A sobering thought.