:00:04. > :00:08.This is Show Me The Money, your weekly guide to who is making the
:00:09. > :00:13.cash and how they are doing it. With us tonight, Mike Farley, who
:00:13. > :00:18.runs the house builder Persimmon. He says he could create more jobs
:00:18. > :00:23.if he got more hell from the Chancellor. Helen Loveless writes
:00:23. > :00:27.about enterprising businesses for the financial Mail on Sunday. James
:00:27. > :00:31.Averdieck set up Gu Puddings. He is hoping for success in his new
:00:31. > :00:37.business with his brother. Another day, another letter in the papers
:00:37. > :00:42.from the people who run British companies. Earlier 500 of them wrot,
:00:42. > :00:46.demanding the 50p tax rate be taxed. Today, 70 bosses have writ on the
:00:46. > :00:50.the Government to ask it to consider its -- written to the
:00:50. > :00:58.Government to ask it to consider its ban on another runway at
:00:58. > :01:03.Heathrow Airport. Mike Farley, on this basic argument
:01:03. > :01:07.of Heathrow first of all. London is a world-wide hub. We need to
:01:08. > :01:10.maintain that status. There is an argument that if you spend on
:01:10. > :01:15.infrastructure, you create jobs, you improve the fabric of the
:01:15. > :01:21.nation at the same time? That is right. You get the regional
:01:21. > :01:24.benefits. The hub feeds in on that basis as well. Helen, a lot of
:01:25. > :01:30.business people travel to meet customers and make contacts - do
:01:30. > :01:33.they need to travel so much nowadays given all the
:01:33. > :01:38.technological advances? They need to travel less n the sense there
:01:38. > :01:43.are video conferencing and other measures. However if you want to be
:01:43. > :01:49.active on the international stage that involves in going to other
:01:49. > :01:55.countries. You cannot do that by sitting at home. You sold souffles
:01:55. > :01:59.to the French. Do you need to make those long journeys to drum up
:01:59. > :02:04.business? I used to take the Eurostar to France. I don't live
:02:04. > :02:08.near Heathrow, so it is easy for me to say I am a big fan of Heathrow
:02:08. > :02:13.expansion. I think Terminal 5 is the best place to travel from,
:02:13. > :02:18.personally. The actual travel business, to meet new customers, to
:02:18. > :02:24.make new sales, there is no subs tuet, is there, for actually going
:02:24. > :02:30.there in -- substitute, is there, for actually going there in person?
:02:30. > :02:35.Absolutely. 50p tax the other issue. Did you sign the letter? No. I
:02:36. > :02:40.didn't. Were you asked to? If I was asked I would not sign. No.
:02:40. > :02:43.not? At this time the Government needs to look at all factors and
:02:43. > :02:45.where it's going to get its income from. I think it is the right thing
:02:45. > :02:51.to do. In the short-term I think the Government made that clear.
:02:51. > :02:56.That is what I like to see happen. A little sacrifice in on the part
:02:56. > :03:04.of captains of industry. Everybody has to do their bit. James do you
:03:04. > :03:09.pay it? I used to. But I don't any more. I have been quiet in the past
:03:09. > :03:14.year. Anything that can be done to reduce tax is a good thing. Do you
:03:14. > :03:19.think the people who wrote the letter are saying it harms business,
:03:19. > :03:23.it harms enterprise? I think it drives people to come up with
:03:23. > :03:28.creative schemes or drives business out of the UK. Either way, I think
:03:28. > :03:32.it is a bad idea. I don't pay the 50p rate tax rate. I will start
:03:32. > :03:37.with that. I don't think it discourages entrepreneurialism.
:03:37. > :03:41.There is evidence that suggests that it can lead to the tax take by
:03:41. > :03:46.the Chancellor going down. If you put up taxes you encourage people
:03:46. > :03:51.to legally avoid taxes and you get less money? In the long-term I
:03:51. > :03:58.think what is the case. Will he be swayed by letters? I don't think he
:03:58. > :04:07.will be this time T letters are the diminished with the frequent use as
:04:07. > :04:12.well. Do you talk about these letters as a tactic to sway the
:04:12. > :04:16.Chancellor? We've had them on 50p tax, on Heathrow. To you think it
:04:17. > :04:22.is a tactic getting steal? I think they are losing some of their value.
:04:22. > :04:27.Everything has its time. Time to move on now. Time to move on to
:04:27. > :04:32.Boom or Bust, a quick flick through some of the news. Starting the
:04:32. > :04:37.claws out for Tokyo's cat cafes. The places where you can stroke a
:04:37. > :04:41.cat while drinking your cup of tea. The protection laws are about to
:04:41. > :04:47.change, bringing in an evening curfew on display cats and dogs. It
:04:47. > :04:52.means the cafes will is to shut up shop at 8pm, rather than staying
:04:52. > :04:58.open 24 hours a day. Spread the news, these people are trying to
:04:58. > :05:05.create the largest sandwich. This is taking part in Wisconsin, where
:05:05. > :05:09.they like to put bacon and peanut butter between their bread. It was
:05:09. > :05:12.sold for charity at the annual Wisconsin Bacon Fest. If you are a
:05:12. > :05:16.pushover, then this could be the job for you. This is still in
:05:16. > :05:24.America - where else! And still breaking world records. This time
:05:24. > :05:28.for the biggest number of human dominoes. The emphasis being on
:05:28. > :05:34.human dominoes. 850 people strapped themselves to the mattresses. They
:05:34. > :05:40.broke the previous record by 300 people.
:05:40. > :05:45.So, Mike Farley, the cafes and the cats in Tokyo. It seems that
:05:45. > :05:51.nowhere is immune to red tape? say, I know we are a nation of cat
:05:51. > :05:55.lovers. I think it is, I know a lot of bureaucracy. I think one thing I
:05:55. > :06:03.would encourage the Government is to get rid of all of them around.
:06:03. > :06:07.Perhaps we could take our claws out to reducing bobg rock casy.
:06:07. > :06:16.don't -- bureaucracy. You were thinking of the planning regime,
:06:16. > :06:23.want you? There are a number of hurdles we vo -- have to go through.
:06:23. > :06:27.The list is never ending. I have yet to meet a businessman who does
:06:27. > :06:34.not complain about that If you ask you would think it is tax. It is
:06:34. > :06:38.legislation. Does that suggest that it is a
:06:38. > :06:43.problem? I think it is a problem. The latest figures show it is about
:06:43. > :06:46.the Government's pledges to reduce regulation. The net regulation will
:06:46. > :06:50.be another 50 million plus in costs to businesses because of the new
:06:50. > :06:58.regulations which have been introduced in 2011. It is clearly a
:06:58. > :07:03.problem. James, I am gathering you are not a fan of red tape? Red tape
:07:03. > :07:08.in France is spectacular compared to this country. Don't we get the
:07:08. > :07:13.regulation we deserve? If business had not done things which offended
:07:13. > :07:18.against the common sensibility then laws would not be brought in to
:07:18. > :07:23.curtail it? Maybe. There is a health and safety culture which has
:07:23. > :07:28.gone rampant. That is what I found. We don't always get the regulation
:07:28. > :07:34.we deserve. If you are trying to stimulate the economy and growth
:07:34. > :07:37.through small businesses, the last thing to do is overcrowd them with
:07:38. > :07:44.regulations. They try and do their best by their staff. The staff in
:07:44. > :07:51.this cafe, this is what I don't understand. How you persuade cats
:07:51. > :07:57.to play during the day is another matter. The biggest sandwich - did
:07:57. > :08:05.that appeal to you? No. Peanut butter was not doing it. And the
:08:05. > :08:12.bacon was not. How productively you best use your lunch break when time
:08:12. > :08:19.is so precious. If my employers were doing that it would be
:08:19. > :08:24.initiative. The best thing is to get away during your lunch break.
:08:24. > :08:30.Productivity levels are raised if you walk around the park for half
:08:30. > :08:37.an hour. Those microbreaks do boost your productivity? I think they do.
:08:37. > :08:39.James, moving on to the human dominoes - it raises a question of
:08:40. > :08:43.product testing. Those mattresses had to be up to the job for them to
:08:43. > :08:48.be able to do that test. How important is product testing in
:08:48. > :08:51.your line of work? I was in the chocolate business. It was very
:08:51. > :08:59.important. We were testing all the time. I remember I used to test
:08:59. > :09:02.with kind of new products. I used to pop colour packaging into the
:09:02. > :09:07.local supermarket and when nobody was looking, create space and see
:09:07. > :09:11.if anybody picked it off the shelves. The fact there was nothing
:09:11. > :09:20.in there, I would apologise and say "sorry there is nothing in there.
:09:21. > :09:27.But thank you for picking it up." Id worked? It It worked? It worked
:09:27. > :09:33.in my case. I am assuming you don't turn on the taps and bounce on all
:09:33. > :09:37.the beds - but something close? think we are looking at kitchens, a
:09:37. > :09:43.main feature of the house. We look to innovate our styles. It is a
:09:43. > :09:48.vital part. This is what sells the house, the kitchen? Followed by the
:09:48. > :09:53.bathroom. What is the kitchen need to have to wow home buyers? That is
:09:53. > :09:59.a moving question. Depending on where you are, in what part of the
:09:59. > :10:04.country. It is innovating all the time. Certainly a lot more goes
:10:04. > :10:08.into kitchen designs these days. You have unveiled a 50% jump in
:10:08. > :10:16.profits. A nice surprise for your shareholders, telling them they are
:10:16. > :10:21.getting �2 billion back in dividends. �6.20 a share. That is
:10:21. > :10:24.right. Was that money lying in the bank which you no longer have the
:10:24. > :10:28.need for? It is the strategy. What we are outlining to shareholders
:10:28. > :10:33.and staff is what we're going to do with the business. That is one half
:10:33. > :10:37.of it. The business will grow, it will pay back that money over nine-
:10:37. > :10:42.and-a-half years T other part is that we are looking to grow our
:10:42. > :10:47.business. We want Persimmon to be a bigger, stronger business. Isn't
:10:47. > :10:53.that the point that that �1.9 billion could be more productively
:10:53. > :10:58.used buying land on which you will then build houses for the future?
:10:58. > :11:03.Persimmon has a good land bank. We have a six-and-a-half year supply.
:11:03. > :11:09.We can operate on a smaller land bank than that. We have cash to
:11:09. > :11:11.invest in the future. I thought the trick was to buy up as much land as
:11:11. > :11:16.possible to keep the price artificially high. It has been
:11:16. > :11:20.proved that is not the case. should not read into this that this
:11:20. > :11:23.is you effectively saying you don't think you will be able to build and
:11:23. > :11:28.sell that many houses in the years ahead, so you are not going to buy
:11:28. > :11:32.the land because you don't think you will need it? On the contrary.
:11:32. > :11:36.We are setting out a route map for shareholders and our business. We
:11:36. > :11:41.have clear direction for the business of the future. We do need
:11:41. > :11:46.to build more houses, don't we? We are building fewer than in
:11:46. > :11:49.generations. As many as the 1920s. You are right. What is stopping the
:11:49. > :11:54.building? Lack of available mortgages. That is the crucial
:11:54. > :12:00.criteria. Not the mortgages themselves; it is the loan to value
:12:00. > :12:05.rash yo. It is first-time buyers and that lack of deposit, having to
:12:05. > :12:10.find 20% deposit. People don't have that �30,000-�40,000. Things would
:12:10. > :12:15.not have been helped by the Halifax putting up its standard variable
:12:15. > :12:19.rate this weekend? Not at all. No- one likes to see an interest rate
:12:19. > :12:24.rise. Overall mortgages are still cheap. If you look at the overall
:12:24. > :12:30.rate, 4%. My first mortgage I was paying 15%. That was a long time
:12:30. > :12:35.ago. Mortgages are relatively cheap. You are a crucial player. Any
:12:35. > :12:39.discussion about how you get growth in this why r economy and how you
:12:39. > :12:45.create more jobs, one way is to build more houses?. Very much so.
:12:45. > :12:49.It has been proven for each house build that creates five new jobs.
:12:49. > :12:55.That is not just jobs on the housing sites, that is people in
:12:55. > :13:00.the high street, building societies, retailers, estate agents, et cetera.
:13:00. > :13:03.It supplies jobs for all those people. Have you said this to the
:13:03. > :13:07.Chancellor? The Government has listened. We hope for an
:13:07. > :13:09.announcement later this month. We hope they will bring forward 95%
:13:09. > :13:14.mortgage. That is number one priority for the industry. We will
:13:14. > :13:19.wait for that announcement. This is a deal where the Government helps a
:13:19. > :13:24.little, you as house buildings help a little and the homeowner chips in
:13:24. > :13:28.a substantial chunk as well. As far as the homeowner is concerned he is
:13:28. > :13:32.putting out 5% deposit, swi a realistic deposit for people to
:13:32. > :13:40.save. We are putting 3.5% of the payments into a fund and the
:13:40. > :13:44.Government is giving a guarantee of 5.5%, which banks are hoping for.
:13:44. > :13:49.It is good business all around. What could happen is volumes of the
:13:49. > :13:53.industry could grow by 10-15%. So the number of new houses which
:13:53. > :13:57.could be built as a result of schemes like this, 10% more than
:13:57. > :14:02.before? That is possible. impact that could have on job
:14:02. > :14:05.creation would be what? If you work that five times up, extra house
:14:05. > :14:09.build, that is a substantial number of jobs in the industry and
:14:09. > :14:13.ancillary business as well. If it is such a winner, it makes you
:14:13. > :14:23.wonder why it has not been done before? I think the Government have
:14:23. > :14:28.
:14:28. > :14:31.listened. Let's look forward rather School leavers who want to start
:14:31. > :14:34.their own business, rather than go to university, are to be offered
:14:34. > :14:42.loans by the Government to get them going. It's reported the plans may
:14:42. > :14:46.be in place in time for the Budget on the 21st of March. Is a scheme
:14:46. > :14:52.like this going to make a difference, is it needed? I think
:14:52. > :14:56.it is needed. There are many young people with good business ideas.
:14:56. > :15:01.Many solid established businesses have trouble getting bank finance
:15:01. > :15:05.so, yes, this would be a great way to stimulate the growth of small
:15:05. > :15:12.businesses. You also stimulate the growth of employment and further
:15:12. > :15:19.jobs. The comparison has been made with these and student loans. These
:15:19. > :15:24.can be anything up to �36,000 in some cases. We could be talking
:15:24. > :15:28.about some substantial amounts of money being made available. I think
:15:28. > :15:32.it would be a small amount to get started and alongside that they
:15:32. > :15:36.will be offering mentoring which must be a key part of any package
:15:36. > :15:40.to make sure people have the business support they need. The
:15:40. > :15:45.other thing I read this morning is that people will have to pitch
:15:45. > :15:50.Dragon's den style for funding, they will not just be given the
:15:50. > :15:54.cash. They have to demonstrate they have a good business plan, a good
:15:54. > :16:00.business idea and that the business is Bible. Would this have helped
:16:00. > :16:05.you? You were not a school leaver of course but some Government
:16:05. > :16:09.encouraged inducement? I was 30 years old when I started. The only
:16:09. > :16:14.thing that concerns me about this is that most people when they leave
:16:14. > :16:17.school firstly do not have an idea about what they want to do and
:16:17. > :16:22.secondly have not really got the experience that you need to start a
:16:22. > :16:26.business. I would be encouraging people to go and get experience,
:16:26. > :16:33.work for a really good company in the sector they are interested in
:16:33. > :16:36.before they actually died in and commit money. Do you think it is a
:16:37. > :16:41.mistake that people are being encouraged to think Starting Your
:16:41. > :16:47.Own Business straight out of school as an alternative to employment or
:16:47. > :16:51.university? Yes, I think there are better uses for Government money. I
:16:51. > :16:55.would rather encouraged links between business and universities,
:16:55. > :17:01.encourage people to go out and export more as we were talking
:17:01. > :17:05.about earlier. I think it is too early for people, sorry to put a
:17:05. > :17:12.damper on things, far be it from me to discourage entrepreneur
:17:12. > :17:16.serialism but I think it should be discouraged. The there are
:17:16. > :17:22.university initiatives to help students put their ideas into
:17:22. > :17:26.reality. That is happening already. Also use a pause there are jobs for
:17:26. > :17:30.these people to walk into and there are not. If you think we can
:17:30. > :17:36.encourage them to contribute to the economy and set up their inventions,
:17:36. > :17:40.that has got to be encouraged. have employed quite a scoop --
:17:40. > :17:44.quite a few school leavers and the issue employers have is the
:17:44. > :17:48.discipline of these guys when the start in the world of work. It is
:17:48. > :17:55.very important to get used to the world of work before starting a
:17:55. > :18:00.business. A don't you learn by doing? I absolutely. Yes, you do,
:18:00. > :18:04.but you do not have to start a business immediately. 18 is very
:18:04. > :18:09.young and the types of businesses you will be encouraging are not
:18:09. > :18:13.going to be, in my view, I think they will have high failure rates
:18:14. > :18:19.and not be the kind of businesses we necessarily want to encourage.
:18:19. > :18:24.We should be going for export orientated hi-tech high I p
:18:24. > :18:28.businesses. I do not think there is not room for both. You are seeing
:18:28. > :18:33.they are not the kind of businesses we want to encourage but you do not
:18:33. > :18:37.know, there are some 18-year-old people out there with fantastic
:18:37. > :18:42.ideas, they might be the Google of the future. If they have fantastic
:18:42. > :18:49.ideas I am sure we will find out. What are you doing nowadays? You
:18:49. > :18:54.have sold Google, haven't you? have, yes. And how much did you get
:18:54. > :19:00.for it? We got a pretty good price for it. De pizzazz that the issue
:19:00. > :19:06.will go? This is the thing, entrepreneur's set up businesses
:19:06. > :19:12.and then sometimes think what will I do with them? Absolutely, you can
:19:12. > :19:15.see I am still young guy, I do not want to play golf all day. I am
:19:15. > :19:21.working in a fantastic new business which has nothing to do with
:19:21. > :19:26.chocolate which is all about music for online advertising. Are you are
:19:26. > :19:33.doing this with your brother, I hope the two of you get on? He is
:19:33. > :19:37.my twin brother, we do get on, we are used to sharing. It has its
:19:37. > :19:42.down sides but it's upsides as well. You have to be careful about the
:19:42. > :19:49.relationship and who is doing what, who gets the profits when you sell
:19:49. > :19:59.the business! Thank you very much. The next big plan for boosting the
:19:59. > :19:59.
:19:59. > :20:04.economy is this. Get your nails done. Penny Haslam gets her talons
:20:04. > :20:10.into a booming business. There have never been so many places to get
:20:10. > :20:15.your nails done. Who would have thought this would make an economic
:20:15. > :20:20.indicator. A decade ago, going out and getting your nails done on a
:20:20. > :20:30.regular basis was pretty much unheard of, now there is an Eyl bar
:20:30. > :20:35.
:20:35. > :20:40.on every high street. In here is a gold mine. -- nail bar. At the
:20:40. > :20:50.moment we are cutting back on big ticket items but still spending on
:20:50. > :20:50.
:20:50. > :21:00.smaller treats. 10 years ago there was a growth in poor economic terms
:21:00. > :21:06.on lipstick scales -- lipsticks sales. What we are seeing now is
:21:06. > :21:14.potentially a similar phenomenon. One are so many springing up on
:21:14. > :21:24.every high street? The entry costs are pretty law and the training
:21:24. > :21:24.
:21:24. > :21:31.times are short. You can start off with a law overhead because Neil
:21:31. > :21:36.varnishes are not expensive. Nail bars are growing because you cannot
:21:36. > :21:41.get them done on the internet. It draws people to town centres and
:21:41. > :21:48.they can socialise and get their nails done for less than a tenner.
:21:48. > :21:52.The make-up more than 15% of new outlets in the past three years. In
:21:52. > :21:58.Europe at the height of recession nail polish sales do nearly 10
:21:59. > :22:03.times as fast as the overall make- up market. In the UK Superdrug is
:22:03. > :22:08.putting nail bars into some of its stores but there is no real
:22:08. > :22:15.ownership of the market, 95 % are run by independents. It does seem
:22:15. > :22:19.we just cannot get enough. What colour are you having? Just natural
:22:20. > :22:25.with a white tip. I have always done my nails, I have been doing
:22:25. > :22:31.them on and off for about 10 years. They just make me feel girly and
:22:31. > :22:37.nice and it completes an outfit I think. It just makes every day
:22:37. > :22:44.hassles fade away in the background. It is not just the meal bars
:22:44. > :22:49.themselves cashing in on the trend for a glossy manicured nails. Best
:22:49. > :22:53.hairdressers has found space for pampering. This man has been in
:22:53. > :22:57.business for 11 years and set up the manicure table at the front of
:22:57. > :23:07.his shop at the end of last year and says it has been well worth
:23:07. > :23:08.
:23:08. > :23:13.doing. We set up for an extra revenue scheme -- scheme. We
:23:13. > :23:18.thought it would benefit the salon if we offered them an extra service
:23:18. > :23:23.while they sit under the heat lamp. All climbs enjoy getting their
:23:23. > :23:30.nails done and for a relatively small outlay of about �100 we are
:23:30. > :23:35.now generating an extra �100 per day. It is a no-brainer. The rise
:23:35. > :23:42.of glossy celebrity looks and a wide range of catwalk inspired
:23:42. > :23:51.colours has pushed the popularity of nail bars. Even Tesco has set
:23:51. > :23:58.some up in their stores. You can pretty much guaranteed there is one
:23:58. > :24:05.near you ready to take your money which is pretty handy. Next week
:24:05. > :24:10.stand by your beds, we have the boss of Best Western on the
:24:10. > :24:14.programme and we hear from the man who lost everything in the stock
:24:14. > :24:24.market in the 80s turn his passion for grown-ups into a multi-million
:24:24. > :24:30.
:24:30. > :24:36.pound business. -- Don't that's -- donuts. A wet Sunday for large
:24:36. > :24:39.parts of the country and called. There will be a return to chilly
:24:39. > :24:45.nights for the week ahead and spells of rain blown in on strong
:24:45. > :24:47.spells of rain blown in on strong winds. Tonight a frost will form
:24:47. > :24:54.winds. Tonight a frost will form across Scotland and parts of
:24:54. > :24:58.northern England. It could be IAC in many parts. East of England will
:24:58. > :25:05.stay wet with sleet and snow mixed in with the rain. It is a cold
:25:05. > :25:09.start to the working week wherever you are. Many places will have a
:25:09. > :25:13.fine Monday, perhaps a few scattered showers in the south-west
:25:13. > :25:18.of England but largely a bright and dry start. There will be a
:25:18. > :25:23.scattering of showers in Wales which will fizzle out through the
:25:23. > :25:28.morning. Northern Ireland will have a few showers but mostly a dry and
:25:28. > :25:32.bright start. A few showers will continue to feed in across the
:25:32. > :25:36.Highlands of Scotland. Much of eastern and southern Scotland try
:25:36. > :25:41.and find along with most of northern England. Down this eastern
:25:41. > :25:45.side that dream is still around in parts of Lincolnshire and East
:25:45. > :25:52.Anglia lingering for most of the day. The aim will be accompanied by
:25:52. > :25:56.a strong and bitterly cold wind making it feel quite miserable. The
:25:56. > :26:03.showers will push back across the home counties even into D East
:26:03. > :26:13.Midlands the rue the day. -- into the East Midlands. Throughout the
:26:13. > :26:14.
:26:14. > :26:21.day. Temperatures will be struggling across parts of the East.
:26:21. > :26:27.At least the rain is falling in areas that really need it. 60 mm of
:26:27. > :26:32.rain falling in the next 36 hours is in eastern areas which have been
:26:32. > :26:40.very dry. It will fizzle out on Tuesday but still some vestiges