Merryn Somerset Webb

Actually, both households and companies in the UK

are running financial surpluses.

And if you look at their balance sheet fundamentals, levels of debt, both corporate and household, are at modest levels by historical standards.

So in terms of the balance sheet fundamentals of UK PLC,

We are poised for liftoff.

There is plenty of fuel in the tank, plenty of ammunition there to be fired.

Balance sheets are poised to be put to work.

Investment, spending and the like.

So, you know, this is one source of optimism.

If the private balance sheet was broken, as well as the public balance sheet, that would be a council of despair.

As it is, private balance sheets are in pretty good shape.

Not everywhere and for every company or household, but in general, they are.

Well, that's nice.

But you have to then look at that and say, fine, there might be a reason why people aren't spending and investing.

And something has to change to incentivize them to do so.

And a very high tax, very high regulation, very politically uncertain environment makes that difficult.

It does.

It does.

So what's getting in the way?

Why are they saving rather than spending their balance sheet?