It occurs to me that this could be more expensive. I don’t know the figures and would be grateful to anyone who does. But think it through for a bit.
Under the old system there were some companies that needed subsidies. And others that coughed up for the privilege of running a franchise.
Under the new there will be a 2% of turnover fee for running something. There will be no payments into the Treasury for running a franchise. The subsidies will have to stay.
So, “profits” will disappear, there’s just the 2% of turnover to be had for the private companies. And whatever profits those cash flow positive franchises had will now go to the Treasury.
So, for this to be a financial net positive for the Treasury the profits flowing in – from people paid a flat percentage of turnover recall, so with no incentive to stamp upon costs – have to be greater than that 2% fee.
Who thinks that’s going to be true over time?