Embedded Files
The Architecture of the Location of Profit.
Background
This essay examines the nature of a business; in this case property development; through the UK economy and money flow system in order to establish the best location in the UK to make a profit.
Theory
This essay proposes that the nature of business; such as property development; is far more complex and reliant on pre-determined money flows and systems outside of the control ability of the individual.
The prospective business person is not a free agent but rather a member of the population carrying out a pre-named form of action to attain a pre-determined goal based on a ‘architecture’; ‘idea’ from the society, government, they exist in.
The location of any profit is therefore dependent on the Architecture, idea, of the state in which it is searched for.
Definitions
Architecture
In the context of this essay Architecture refers to ‘idea’ or ‘ideas’.
Business
‘a person's regular occupation, profession, or trade.
‘Commercial activity.’
Source: Google Search
Property Development
‘Property Development is the business of buying land and buildings and then making improvements to them so that their selling price exceeds the price paid for them.’
Source: https://www.collinsdictionary.com/dictionary/english/property-development
Money
‘Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts in a particular country or socio-economic context.’
Source: https://en.wikipedia.org/wiki/Money
Money Supply
‘In economics, the money supply (or money stock) is the total amount of monetary assets available in an economy at a specific time.’
Source: https://en.wikipedia.org/wiki/Money_supply
‘There are just two official UK measures. M0 is referred to as the "wide monetary base" or "narrow money" and M4 is referred to as "broad money" or simply "the money supply".’
Source: https://en.wikipedia.org/wiki/Money_supply
Capital
‘financial assets or the financial value of assets; held in deposit accounts in banks that pay interest on them.’
Source: https://www.investopedia.com/terms/c/capital.asp
Profit
‘a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.’
Source: Google Search
Financial Leverage
‘Financial Leverage can be aptly described as the extent to which a business or investor is using the borrowed money. Business companies with high leverage are considered to be at risk of bankruptcy if, in case, they are not able to repay the debts, it might lead to difficulties in getting new lenders in future. It is not that financial leverage is always bad. However, it can lead to an increased shareholders’ return on investment. Also, very often, there are tax advantages related with borrowing, also known as leverage.’
Source: https://www.readyratios.com/reference/debt/financial_leverage.html
‘Financial leverage indicates the reliability of a business on its debts in order to operate.’
Source: https://www.readyratios.com/reference/debt/financial_leverage.html
‘If the financial leverage ratio of a company is higher than 2-to-1, it indicates financial weakness. If the company is leveraged highly, it is considered to be near bankruptcy. Also, it might not be able to secure new capital if it is incapable of meeting its current obligations.’
Source: https://www.readyratios.com/reference/debt/financial_leverage.html
‘A leverage ratio is meant to evaluate a company’s debt levels. The most common leverage ratios are the debt ratio and the debt-to-equity ratio.’
Source: http://www.investinganswers.com/dictionary/leverage-ratio
Leverage is the borrowing of money to increase the outcome of a business deal.
Debt
‘Debt is an amount of money borrowed by one party from another.’
Source: Google Search
Assets
‘an item of property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.’
Source: Google Search
Liabilities
‘a thing for which someone is responsible, especially an amount of money owed.’
Source: Google Search
Net Worth
‘Net worth is the value of all assets, minus the total of all liabilities. Put another way, net worth is what is owned minus what is owed.’
Source: https://www.bankrate.com/calculators/smart.../personal-net-worth-calculator.aspx
Debt Ratio
A debt ratio is simply a company's total debt divided by its total assets.
Source: http://www.investinganswers.com/dictionary/leverage-ratio
Equity: ‘the value of the shares issued by a company.’
Source: Google Search
Shares: ‘a part or portion of a larger amount which is divided among a number of people, or to which a number of people contribute.’
Source: Google Search
The Financial Leverage Ratio.
The Financial Leverage Ratio can be expressed as
Financial Leverage Ratio = Total Debt / Total Equity
This is the same as the Debt-to-Equity Ratio.
Debt-to-Equity Ratio = Total Debt/Total Equity
Source: http://www.investinganswers.com/dictionary/leverage-ratio
Method
The topics with which the property developer has to interact are examined to establish any influence.
The Population of the UK is established.
The Tax Returns Revenue of the UK is established.
The Debt of the UK is established
The Assets of the UK are established.
The Asset spending per Country in the UK is established.
The Liabilities of the UK are established.
The Net Worth of the UK is established.
The Debt Ratio of the UK is established.
The Equity of the UK is established.
The Financial Leverage Ratio of the UK is established.
The total amount of money currently in the UK is established.
The amount of money per capita currently in the UK is established.
The system at a national, regional, and local level of the UK through which the money per capita currently flows is then established.
The data for each country, region and local authority in terms of Land Area, Population, Population Density, Revenue Expenditure, Total UK Spending, Local Authority Revenue Expenditure per land area and per capita in the UK, UK Revenue Expenditure for countries and regions per km2 of land area and per capita are established.
To ascribe the flow of money more directly to property development the UK Revenue Expenditure per country and regions for Housing and Community Amenities, per km2 of land area and per capita are also established.
Conclusions are then drawn.
Data is attached to this essay in the form of a spreadsheet
References are included in the text and at the end of the essay.
Data Analysis
Population
The Population of the UK is 65,640,100
Source: Google Search
Source: https://en.wikipedia.org/wiki/United_Kingdom
Source: www.UKometers.info/UK-population/uk-population/
The UK Revenue
This is made up of Tax Returns, Debt, Assets, Asset spending per Country in the UK, Liabilities, Net Worth, Debt Ratio, Equity and Financial Leverage Ratio.
Data for the Financial Status of the UK
Tax Returns Revenue of the UK
This is made up of
Income and Capital Taxes £ 3,704 / person
National Insurance + £1,985 / person
Indirect Taxes + £4,345 / person
Fees and Charges + £0 / person
Business and Other Revenue + £664 / person
This allows for a Total Direct Revenue of £10,698 / person
Source: https://www.ukpublicrevenue.co.uk/numbers?units=d
The total revenue for the UK can be calculated as population x tax per person
65,640,100 x £10,698 / person, approx. £702,217,789,800
Source: https://www.ukpublicrevenue.co.uk/numbers?units=d
Debt
The Total UK Debt for 1 year incl. capital and interest equates to £1,603,000,000,000.
Source: https://en.wikipedia.org/wiki/United_Kingdom_national_debt
Approx. £24,421 per person
Source: UK Public Spending.co.uk UK Central Government and Local Authority Public Spending 2016 - Pie Charts Tables
Assets
The actual UK Asset value be calculated as Total UK Debt - Tax Returns = Assets
£1,603,000,000,000 - £702,217,789,800
This leaves a remaining revenue of
£900,782,210,200 to run the country for a year.
This amounts to approx. £13,723 per person in the UK.
Source: https://www.ukpublicrevenue.co.uk/numbers?units=d
Source: http://www.tradingeconomics.com/united-kingdom/money-supply-m1
Asset spending per Country in the UK
The total asset spending per capita can be calculated as country spending from
UK Funds / Country Population = total asset spending per capita.
In England the spending per Capita is £9,111
In Wales the spending per Capita is £10,120
In Scotland the spending per Capita is £10,689
In N. Ireland the spending per Capita is £11,209
Source: https://www.ukpublicspending.co.uk/year_spending_2016NIbn_17bc1n#ukgs302
Source: Google Search
Source: Public Expenditure by Country and Region www. parliament.co.uk
Liabilities
If the total UK debt is taken as the total liabilities of the UK the capital and interest for 1 year equate to £1,603,000,000,000.
Source: https://en.wikipedia.org/wiki/United_Kingdom_national_debt
Approx. £24,421 per person
Source: UK Public Spending.co.uk UK Central Government and Local Authority Public Spending 2016 - Pie Charts Tables
Net Worth
The Net Worth of the UK can be calculated as
Total Assets – Total Liabilities
£900,782,210,200 - £1,603,000,000,000
£702,217,789,800.
£702,217,789,800. / 65,640,100
£10,698 per person in the UK
Debt Ratio
The Debt Ratio of the UK can be calculated as
Total Liabilities / Total Assets
£1,603,000,000,000 / £900,782,210,200
1.77 or 1.77%
Equity
Allowing for the total stock exchange to represent the total equity of the UK; as a business.
The UK stock exchange has a total value of £3,272,000,000.
Source: http://www.visualcapitalist.com/all-of-the-worlds-stock-exchanges-by-size/
£3,272,000,000 for a population of 65,640,000
£49.85 for each person in the UK.
Source: Google Search
Source: World Bank
The Financial Leverage to Equity Ratio can be considered to be the Total Debt to Equity Ratio.
Debt is therefore considered to be an asset that is invested, a liability to be repaid or a leverage; the amount of borrowed money that is relied upon.
Financial Leverage to Equity Ratio or the Debt to Equity Ratio
The Financial Leverage or the amount of Debt being used related to the shares per head of population of the UK can be calculated as.
Total Debt / Total Equity
£1,603,000,000,000 / £3,272,000,000
£489.91 to £1
Summary of the Total UK Revenue Per Person
The Population of the UK is 65,640,100
This is made up of
Tax Returns £10,698 per person
Debt £24,421 per person
Assets £13,723 per person in the UK
Asset spending per Country in the UK £9,111 to £11,209 per person
Liabilities £24,421 per person
Net Worth £10,698 per person in the UK
Debt Ratio
Total Liabilities Per Person / Total Assets Per Person
£24,421 / £13,723
£1.77 pound of debt to £1 of assets per person
Equity £49.85 for each person.
Financial Leverage Ratio.
Total Debt Per Person / Total Equity Per Person
24,421 / 49.85
£489. 89 of debt to £1 of equity per person.
The amount of debt per person exceeds the amount per person of tax return, assets, asset spending per country, liabilities, net worth and equity per person.
For every £1 of asset per person there is £1.77 of existing debt to finance it.
For every £1 of equity per person there is £489.89 of existing debt to finance it.
There is no actual permanent money retained by any of the population in the UK.
Revenue either manufactures; in the Royal Mint; distributed by government or population is a flow.
The property developer must constantly re-obtain their money; capita, debt, investment, leverage from a larger source of money flow at the local authority, region or country level to remain solvent. To remain in the money flow.
The Total Amount of Money; Currency; Currently in the UK.
This is the amount of M0 to M4 money in circulation.
£2,366,289,000,000.
The Amount of Money; Currency; per Capita in the UK.
This is the amount of M0 to M4 money in circulation available as investment by central government in the devolved countries, regions and local authorities and to each individual.
£2,366,289,000,000 / 65,648,054 (total UK Population)
£36,045 per person per year in the UK.
The National Level Money Flow System
The UK is not an ancient, single, economy that has developed over time it is a conglomerate of economies that has been combined since 1801.
The total current amount of money per person per year; £36,045; in the UK is fed from a national level to a devolved country, region, local authority and then an individual level through a hierarchy system.
The National Level Money Flow System
The money flow at the National level is influenced by the ‘Barnett Formula’.
The funding covers only the statutory duties each country is responsible for.
The total amount per person per country per year is determined by the amount of money allocated to England.
If this is increased or decreased then the amount of funding for the other countries also changes proportionately.
The formula can be stated as.
Source: https://en.wikipedia.org/wiki/Barnett_formula#How_the_formula_works
This leads to an average amount of the currency £36,045; being spent for each person in the population of each country per year. Since each country has a different population and land area the currency per person is only a guide to the average revenue given to each of the people in the country relative to the average per person for the whole UK.
The UK has an average spending of to £9,159 per person per year.
Due to the variations in population and land area.
England has an average of £8,898 per person per year.
Northern Ireland has £11,042 per person per year.
Scotland has £10,651 per person per year.
Wales has £10,076 per person per year.
The UK Regional and Local Level Money Flow System
The spending at the regional and local authority level is controlled totally by specific central government offices through the devolved national governments through the regional areas to various historic forms of local authorities some of which pre-date the founding of the UK.
England Regional and Local Level Money Flow System
England obtains its money flow from the Secretary of State for Communities and Local Government.
Source: https://en.wikipedia.org/wiki/Government_spending_in_the_United_Kingdom
England has a local government dating back to 700AD to 1066AD.
Source: https://en.wikipedia.org/wiki/Kingdom_of_England
The current system in England has 10,922 components of local government that have to be consulted on any central government policy or revenue; flow of yearly money; from central government into England.
It is comprised of.
9 devolved regional authorities.
6 metropolitan counties.
77 non-metropolitan counties.
55 Unitary authorities.
Greater London. 32 London Boroughs. City of London.
36 metropolitan districts.
256 non- metropolitan districts
10,449 Civil Parishes.
Source: https://en.wikipedia.org/wiki/History_of_local_government_in_England
Source: https://en.wikipedia.org/wiki/Regions_of_England
Source: https://en.wikipedia.org/wiki/Metropolitan_county
Source: https://en.wikipedia.org/wiki/Non-metropolitan_county
Source: https://en.wikipedia.org/wiki/Unitary_authorities_of_England
Source: https://en.wikipedia.org/wiki/List_of_London_boroughs
Source: https://en.wikipedia.org/wiki/Metropolitan_borough
Source: https://en.wikipedia.org/wiki/Non-metropolitan_district
Source: https://en.wikipedia.org/wiki/Civil_parish
Scotland Regional and Local Level Money Flow System
Scotland obtains its money flow from the Cabinet Secretary for Finance and Constitution.
Employment and Sustainable Growth.
Source: https://en.wikipedia.org/wiki/Government_spending_in_the_United_Kingdom
Scotland has a local government dating back to 843AD.
Source; https://en.wikipedia.org/wiki/Kingdom_of_Scotland
The current system in Scotland has 32 Unitary Authorities of local government that have to be consulted on any central government policy or revenue; flow of yearly money; from central government into Scotland.
Source: https://en.wikipedia.org/wiki/Local_government_in_Scotland
Wales Regional and Local Level Money Flow System
Wales obtains its money flow from the Minister for Local Government and Communities.
Source: https://en.wikipedia.org/wiki/Government_spending_in_the_United_Kingdom
Wales has a local government dating back to 1057AD.
Source: https://en.wikipedia.org/wiki/Wales
The current system in Wales has 22 Principal Areas of local government that have to be consulted on any central government policy or revenue; flow of yearly money; from central government into Wales.
Source: https://en.wikipedia.org/wiki/Local_government_in_Wales
Northern Ireland Regional and Local Level Money Flow System
Northern Ireland obtains its money flow from the Minister of the Environment.
Source: https://en.wikipedia.org/wiki/Government_spending_in_the_United_Kingdom
Northern Ireland has a local government dating back to 1921.
The current system in Northern Ireland has 11 District Councils of local government that have to be consulted on any central government policy or revenue; flow of yearly money; from central government into Northern Ireland.
Source: https://en.wikipedia.org/wiki/Local_government_in_Northern_Ireland
Results from the Spreadsheet Analysis
Data - Land Area.
The UK has 242,545 km2 of land area.
England has the largest single country area of 130,310 km2.
The South West of England has the largest single regional land area in the UK of 23,837 km2.
Highland in Scotland has the largest single local authority land area in the UK of 25,657 km2.
Data - Population.
The UK has 65,648,054 people in it.
England has the largest single country population of 55,268,067
The South West of England has the largest single regional population of 9,026,297.
London has the largest city population of 8,787,892.
West Midlands has the largest Metropolitan County population of 2,864,925.
Kent has the largest local authority population of 1541,893.
Data - Population Density.
The UK has a population density of 271 people per km2.
Islington local authority has the highest population density in the UK. Even higher than any country.
57 times higher than the UK population density.
The six highest population densities in the UK. Even higher than any country or even the UK are located around the capital London.
England has a population density of 424 people per km2.
Wales has a population density of 150 people per km2.
Northern Ireland has a population density of 137 people per km2.
Scotland has a population density of 69 people per km2.
Data - Revenue Expenditure
England has the largest revenue expenditure per country then Scotland, Wales and Northern Ireland.
Havering; London Borough; has the largest local authority revenue expenditure of 1,856,048,000.
Data - Total UK Spending
England has the largest revenue expenditure per country then Scotland, Wales and Northern Ireland.
London has the largest city spending at £89,569,000,000.
The South East has the largest regional spending of £73,211,000,000.
The North West has the second largest regional spending of £68,077,000,000.
Data - Local Authority Revenue Expenditure per land area in the UK.
The UK has a local authority revenue expenditure of 394,921 per km2 of land area.
The City of London has the largest local authority spending of 155,492,667 per km2 of land area. London is followed by Harlow, Islington and Tower Hamlets.
Data - Local Authority Revenue Expenditure per capita in the UK.
The City of London has the largest local authority spending of £49,620 per capita.
London is followed by Richmondshire, Harlow and South Hams.
Wales has a local authority revenue expenditure of £2,284 per capita.
Scotland has a local authority revenue expenditure of £1,739 per capita.
England has a local authority revenue expenditure of £1,418 per capita.
Northern Ireland has a local authority revenue expenditure of £480 per capita.
Data - UK Revenue Expenditure for countries and regions per km2 of land area.
London has the largest city revenue expenditure of £56,977,735 per km2 of land area.
The North West has the largest regional spending of £4,825,760 per km2 of land area.
The North West is followed by the West Midland and the South East.
England has a revenue expenditure of £3,773,916 per km2 of land area,
Northern Ireland has a revenue expenditure of £1,513,247 per km2 of land area.
Wales has a revenue expenditure of £1,512,683 per km2 of land area.
Scotland has a revenue expenditure of £738,830 per km2 of land area.
Data - UK Revenue Expenditure for countries and regions per capita.
Northern Ireland has the largest UK revenue expenditure of £11,042 per capita.
Scotland has a revenue expenditure of £10,651 per capita.
Wales has a revenue expenditure of £10,076 per capita.
England has a revenue expenditure of £8,898 per capita.
The North East has the highest UK revenue expenditure per UK region of £9,680 per capita.
Data - UK Revenue Expenditure per country and regions for Housing and Community Amenities.
England has £7,206,000,000
Scotland has £1,767,000,000
Northern Ireland has £766,000,000
Wales has £715,000,000
London has the largest regional revenue expenditure of £1,793,000,000
London is followed by the South East at £868,000,000.
Data - UK Revenue Expenditure per country and regions for Housing and Community Amenities per km2 of land area.
Northern Ireland has £56,373 per km2 of land area.
England has £55,299 per km2 of land area.
Wales has £34,481 per km2 of land area.
Scotland has £22,680 per km2 of land area.
London has the largest regional revenue expenditure of £1,140,585 per km2 of land area.
London is followed by the West Midlands at £62,394 per km2 of land area.
Data - UK Revenue Expenditure per country and regions Housing and Community Amenities per capita.
Northern Ireland has £411 per capita.
England has £327 per capita.
Wales has £230 per capita.
Scotland has £130 per capita.
London has the largest regional revenue expenditure of £204 per capita.
London is followed by the North East at £184 per capita.
Communications Issues
The belief in the current state of the economy; the location of profit; is passed between each member of the government, region, local authority and individual by communications.
Each country in the UK has an historic money flow system. England from 700AD. Scotland from 843AD. Wales from 1057AD and Northern Ireland from 1921. These are systems based on verbal and only when legally required written communications. It could take a month for a Sovereign to convene a parliament for tax gathering, obtain a writ, issue the writ, get it to the Privy Seal Office, to the Barons of the Exchequer in Westminster, get writs from the Exchequer, pass these to the Sheriffs and begin tax collections.
Source: https://www.historyextra.com/period/medieval/a-brief-history-of-how-people-communicated-in-the-middle-ages/
The speed of communications interchange increase from this time can be described.
In 1660 the General Post Office was established.
In 1763 the first postal system was formed.
In 1784 the first mail coach ran.
Source: https://en.wikipedia.org/wiki/Royal_Mail
In 1801 The UK began operating as a single communicating money, tax, system.
In 1830 the first mail train ran.
Source: https://en.wikipedia.org/wiki/Royal_Mail
In 1848 the telephone system began to be formed.
In 1896 the radio communication system was developed.
In 1927 television communication system was developed.
In the 1960’s computers and computer networks were developed.
In 1983 the internet was developed.
In the 1980s. mobile G1 networks were developed for communications.
In the 1990s. mobile G2 and G3 networks were developed for communications.
In 1998 Google was founded.
Source: Google Search
In the 2000s. G4 networks were developed for mobile communications.
Source: https://en.wikipedia.org/wiki/Timeline_of_communication_technology
In 2004 Facebook was founded.
Source: Google Search
In 2005 UTube was founded.
Source: Google Search
In 2006 Twitter was founded.
Source: Google Search
In 2010 Instagram was founded.
Source: Google Search
In 2015 to 2016 the number of letters per year in the UK was 12,600,000,000.
Source: https://www.ofcom.org.uk/__data/assets/pdf_file/0029/94961/2015-16-Annual-Report.pdf
This is 1,050,000,000 per month compared to the 1 message taking a month in medieval England.
The overall pattern is faster and more volume of communications over the same land area, the same time frame and an increasing population.
In 2018 a bill of parliament for a change to the revenue can take from a matter of days to a year to become law.
Source: https://www.gov.uk/guidance/legislative-process-taking-a-bill-through-parliament
The UK Government is therefore behind the speed of communications available currently and is still operating on a verbal and only when legally required written communications level to in act legislation and change the nature of the country.
The population of the UK are however operating at the maximum current technological level of communications and so want change to occur at their ability rate.
This variance between these two conditions was shown most clearly by the speed at which the 2007 world economic crash occurred and was reported. This was far faster than the International and UK legislative process could respond to and so they were unable to prevent large variations in revenue, money, debt, investment and leverage occurring globally that changed the nature of the revenue flow in individual countries such as the UK.
Source: http://news.bbc.co.uk/1/hi/business/6906914.stm
Source: http://news.bbc.co.uk/1/hi/business/7521250.stm
Source: http://news.bbc.co.uk/1/hi/business/6994099.stm
Source: http://news.bbc.co.uk/1/hi/business/7021529.stm
Source: http://news.bbc.co.uk/1/hi/business/7199552.stm
Conclusions
Having examined the topics with which the property developer has to interact the total state of influence can be established.
The total investment fund of the UK for devolved countries, regions and local authorities is allocated from central government and as such is part of the total government finances.
The total government finance assets of the UK are less than the total debts or liabilities of the UK.
The total government finances indicate that the UK has a negative net worth.
The total government finances indicate that for every pound of UK assets, the UK has £1.77 of debt.
The financial leverage ratio of the UK is more than 2 to 1 and so the UK is financially weak and moving to bankruptcy.
For every £1 of the UK owned by the shareholders; population; £489.89 is owed to someone else.
The UK government finance can be considered to be permanently moving towards a solvent situation by maintaining a revenue surplus; by regarding debt, as investment and leverage; above the tax collected to allow for constant investment and repayment.
The current UK economy is therefore debt; leverage; investment financed since the total public debt per person is higher than the per person amount of tax revenue that can repay it.
The UK economy is currently dependent on ‘infinite’ debt, leverage and investment.
This belief in ‘infinite’ revenue applies not only to money but also to environment, natural resources and energy.
This form of government financing; by regarding debt, leverage as investment; will not be available in the future after the effects of climate change, fossil fuel phase out and environment, resource and energy depletion due to increasing populations are considered.
The current UK money flow system must therefore be reviewed; after ‘Brexit’; not only to re-establish an independent UK economy but also to allow for ongoing climate change and environment, resource and energy depletion with an increasing population occurring up to the end of the century.
If the central government is in debt then they have no ability to provide actual money; currency; as investment to each country in the UK or each combined regional area or each local authority or any individual.
If the government debt is considered as money borrowed to be invested then the currency allocated to each country can be regarded as a transferred debt; investment, leverage.
The currency is a debt moved from central government to a country who then move it to a regional authority who then move it to a local authority who then move it to an individual to allow repayment over a longer tax return timescale as taxation.
The currency available per capita can be regarded as the amount of currency each member of the population receives as an investment or as the amount of money each member of the population has to pay back as a repayment on the original government debt by an increase per year in their taxes equal to their share of the total investment; debt; over 1 year. After the year the debt is reviewed and the amount of tax repayments per person adjusted accordingly.
The total system of money flow in the UK; now considered as the percentage of debt, investment, leverage allocated to each member of the population; is only determined; pre-determined; by central government.
The percentages of the total money flow; debt, investment, leverage; allocated from central government to each country, region and local authority are only determined; pre-determined; by central government.
Specific central government departments deal with the allocation of money flows; debt, investment, leverage; to a particular country, its region and its local authorities.
The repayment of the currency; debt; investment; leverage; is controlled by central government by taxation levels.
Only the central government has full control of the UK finances.
Individual members of the population; business people, property developers; cannot apply directly to government departments for part of the money flow; debt, investment or leverage. The applications can only come through a complex system of devolved country parliaments, regional authorities and historically evolved local authorities.
The result of this complexity are variations in speed of identification of need, response to need and application of revenue throughout the UK.
This variance is also influenced by the revenue state of the capital city of the UK, London.
Devolution and regionalization have only extended the existing historical delays in the English financial system into the other devolved Parliaments.
In scale of complexity of system of money; debt, investment, leverage; flow the countries of the UK can be listed as England, Scotland, Wales and Northern Ireland.
The money; debt, investment, leverage; flow system is 1 government; itself made up of 10,922 English components; feeding money out to 65 other administration areas which then distribute it between 65,648,054 people to allow the money to be repaid over 1 year or over the lifetime of any member of its population.
The property, the money; debt, investment, leverage; obtained by any business; property developer; is passed onto the general public to allow the repayment of the debt, investment, leverage to begin.
Property Developers do not determine the money; debt, investment, leverage; flow process they only follow its pre-determined paths and timescales to retain part of the capital for themselves temporarily and allow the UK finance system to remain active.
Profits can be described as temporary access to money flow; debt, investment, leverage; to allow capital to be accrued and re-invested in banks who then pass it back to central government.
If used to purchase anything the; debt, investment, leverage; merely goes through a larger number of businesses or people before it spreads through more banks and is returned as taxes to the central government.
Profit is a transient, state developed and maintained, incentive in a business or a persons life before it demands more work from the individual to sustain itself.
Overall the sequence of best location in terms of profits by Country is England then Northern Ireland then Wales or Scotland.
Overall the best location in terms of profits by Region is England in the South East then the South West or North West or North East and finally the Midlands.
Overall the best location in terms of profits by Region by Metropolitan County is England West Midlands.
Overall the best location in terms of profits by Local Authority for land is Highlands in Scotland.
Overall the best location in terms of profits by Local Authority is a tie between Islington and Harlow then Highland; in Scotland; Kent, Havering, Tower Hamlets, Richmondshire and South Hams.
Overall the best location in terms of profits by Local Authority is London.
The overall movement of the money flow is from Central Government in Westminster to London.
The majority of the money flow appears to not move location but to remain in the capital city of the UK. If this is the case then the use of the ‘Barnett Formula’ is pre-weighted by outdated communication systems in England before it is used to determine the revenue for the rest of the UK. Change the Communication Speed, Land Area, Population, Population Density, Equity, Stocks and Shares of London and you can change the revenue characteristics of the whole UK.
The prospective property developer is; from the data; best focused on South East England for temporary profit potential from the existing money flow around and in the capital city of the UK.
This however places the property developer in the country with the most complex money allocation system in the UK which will reduce the speed of being able to obtain, use, retain capital and repay any money.
The Population density of the UK increases towards London.
The land availability increases away from London and into Scotland.
Property development will therefore be focused on identification of any spare land not covered by local authority planning controls or low use green belt around the South East to obtain land to develop new builds on. The London area has the largest area of Green Belt in England. London can therefore influence the value of land in the Green Belt and also land outside the Green Belt. It can therefore not only control land values but also population densities in England and in each country of the UK.
Source: http://www.eadt.co.uk/news/countryfile-comes-to-essex-1-5422203
Source: https://en.wikipedia.org/wiki/Campaign_to_Protect_Rural_England
Source:https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/642684/Green_Belt_Statistics_England_2016-17.pdf
The other likely form of property development profit is in the high density re-sale market where a larger profit can be obtained on existing property by its refurbishment and re-sale. This will also be located in the South East and around the capital of the UK, London.
London influences property values in England and then property values; through revenue allocation percentages per country in the UK.
Source: https://www.telegraph.co.uk/property/house-prices/revealed-the-uks-most-expensive-streets/
Source: http://www.independent.co.uk/news/business/news/uk-most-expensive-street-kensington-palace-gardens-london-house-price-average-35-million-a7978451.html
Communications like revenue are pre-determined components that can change the nature of a business. Property Developers have to believe the government communications about the state of revenue in the UK. They must believe the revenue flow is stable or increasing. Only in believing and recirculating the government communications can they maintain their ability to obtain loans for the potential amount of work they have. Only by conforming to pre-determined revenue analysis can they retain some of the money flow for themselves.
The UK Government is however behind the speed of communications available currently and is still operating on a verbal and only when legally required written communications level to in act legislation and change the nature of the country.
The population of the UK are however operating at the maximum current technological level of communications and so want change to occur at their ability rate.
Communication variations occur and cause an increase or decrease in the flow of revenue. This causes further delays between obtaining, investing, retaining capital and repaying any money. This in extreme communication variations; where the property company ignores the overall influence of the UK; or world; on their revenue status and instead insists on believing their own publicity causes companies to fail financially.
The Property Developer is not creative. They are totally dependent on the pre-determined, apportioned, revenue of the UK state and its pre-determined, formulaic, historical, complex administration, transient profit, tax based re-financing, land availability and the communications and revenue state of the capital city of the UK as to which area of the UK they can work to make a profit.
The location of any profit is therefore proven to be dependent not on individual skill but on the Architecture of the state in which it is searched for.
Ian K Whittaker
Websites:
https://sites.google.com/site/architecturearticles
Email: iankwhittaker@gmail.com
14/03/2018
14/10/2020
5593 words over 13 pages
Additional References.
Source: http://gov.wales/docs/statistics/2017/170622-local-authority-revenue-budget-capital-forecast-2017-18-en.pdf
Source: https://www.gov.uk/government/statistics/local-authority-revenue-expenditure-and-financing-england-2017-to-2018-budget-individual-local-authority-data
Source: https://beta.gov.scot/news/budget-local-government-funding-settlement/
Source: https://www.niauditoffice.gov.uk/publications/local-government-annual-report-2017
Source: http://www.antrimandnewtownabbey.gov.uk/getmedia/6d7482d4-2f60-4f19-97dd-c36f9f1ce8e6/Antrim-and-Newtownabbey-16-17-audited-accounts.pdf.aspx
Source: total comprehensive income and expenditure
Source: http://www.belfastcity.gov.uk/council/Publications/Financeplan.aspx
Source: total comprehensive income and expenditure
Source:https://www.causewaycoastandglens.gov.uk/uploads/policies/Causeway_Coast_and_Glens_Borough_Council_Certified_Accounts_2016-17.pdf
Source: net worth
http://www.derrystrabane.com/getmedia/da8b7031-02a9-44bc-a87d-ede8ed8cbca7/Final-signed-DC-SDC-Accounts.pdf?ext=.pdf
Source: Total council reserves
https://www.fermanaghomagh.com/?downloads=file&file=23889
Source: net worth
https://www.lisburncastlereagh.gov.uk/uploads/general/LCCC_Certified_Accounts.pdf
Source: net worth
https://www.midandeastantrim.gov.uk/downloads/Final_signed_and_certified_accounts_201617_Meabc.pdf
Source: net worth
http://www.midulstercouncil.org/getmedia/b0196258-b7b8-4b18-ac1d-b3f973880429/Statement-of-Accounts-2016-17.pdf?ext=.pdf
Source: net worth
http://www.newrymournedown.org/media/uploads/statement_of_accounts_2015_-_16.pdf
Source: total comprehensive income and expenditure http://www.ardsandnorthdown.gov.uk/downloads/AND_Financial_Statements_2016-17_Published.pdf
Source: total council reserves
https://www.armaghbanbridgecraigavon.gov.uk/council/finance-information/#1490183543784-c6d0a956-d934
Armagh City Banbridge Craigavon Borough Council Certified Accounts 2016-17
Source: net worth HM Treasury Country and Regional Analysis 2017
Source: https://tradingeconomics.com/united-kingdom/money-supply-m0 (M0,M1,M2,M3 Money)
Source: https://www.statista.com/statistics/320127/uk-banking-total-money-supply/
Source: https://www.theguardian.com/business/2017/sep/18/uk-debt-crisis-credit-cards-car-loans
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