Introduction
I will be considering the impact of changes to government spending on Land Rover/Jaguar at a local, national or European level and the impact it will have.
European Union In 1952 The European Union was formed as it name states European Union this means all European countries united together in one union following which were envisioned to benefit the countries in Europe by providing availability which were not available before and in United Kingdom became a member in 1973. If the United Kingdom plans to remain in the EU the expenditures are going to increase and this implies additional taxes in the UK economy example to businesses like land rover which provides products to most countries in the European Union. The government has numerous taxes to increase; income tax, value added tax, business rates and corporate tax. If these taxes are gradually rising they will have a massive influence on Land rover/ Jaguar because if they cost of operating business within and outside the boundaries of United Kingdom will be too costly which will affect their profits
The government spending will have a massive impact on trading for example because if they are not promoting the spending for example to promote trading then the benefits that land rover/jaguar will decrease because there is not enough promotion to benefit them.
Also if there is not enough government spending in the European Union this means the cost to participate in the union will increase which then means countries will need to find more finances to be a member which means businesses like land rover/jaguar taxes will increase because of the fact that they make millions a year so they are an easy target because government can increase they taxes and these business.
Also another impact is that if government in the countries in the European Union cut back on the spending in the countries the development of the country will be at a standstill meaning some cars that needs certain infrastructure won’t be able to use certain cars will not be able to be used in the countries because certain roads for example might not be wide enough or the kind of roads are not able to maintain these cars.
It is important that business like land rover only promote their business in countries of the European Union which benefits them financially meaning countries that promote and invest in their country.
National Government
The national government has the influence to choose on how the UK monetary fund is going to be invested over the country. The way they manage and use the money and also how they decide to spend the money will have an influence on Land rover/ Jaguar.
If the united kingdom government intends to reduce funding for the infrastructure of the UK then the transportation of products from the point of been made until to the stores will be difficult because the correct road infrastructure might not be in place to get the cars to their possible car marts. The distribution system needs to be effective because it impacts on the business. The government contribution to the development of the country is important because if improves many aspects of the business that for example if the government invest in the education system the business will get benefits from this because they are able to hire better quality workers because the educational system of the united kingdom is top notched then better quality workers will be qualified especially in the important areas for example engineering and marketing.
Also if the government is not investing in the country then it is likely that normal consumers will not have the necessary finances to buy thee luxurious songs because the more money the government invest in the country the better the finances of the country will be. Which means the business will be better financed because there is a possibility to get more customers because customers are able to buy cars because they are living in a