Jack Wigham
Fiscal and Monetary Policies.
(1) Introduction.
This report is to assist Hertel in their understanding of government fiscal and monetary policies and
what the impacts will be upon the business, the research I will be collecting will relate to policies in 2016
and current 2017 fiscal and monetary policies.
(1) Who is Hertel?
Hertel has established operations in Europe, Caspian, Asia, Australia and the Middle East, Hertel works
for customers in the Oil and Gas, Process and Energy industries. Hertel offer services for many different
areas of the business such as the building of new assets, maintenance of buildings, shut downs,
modifications and decommissioning. The Purpose of Hertel is to provide services to clients that operate
within the industries they offer their services to clients that are working on large scale projects and this
is what generates the company a profit. Hertel has been in business for over 120 years, originally
supplying seals and insulation materials by the use of ships. In the 1970’s Hertel was producing most its
turn over from insulating navy vessels however during this time there was a decrease in the frequency
of marine repairs which impacted Hertel’s turnover which resulted in many redundancies having to be
made. An expansion into Europoort (Rotterdam) allowed Hertel to grow providing oil and
petrochemicals, originally in the Netherlands and then Europe. Therefore, Hertel has so many disciplines
in the industrial service industry. Hertel has established operations in 18 different countries, these
countries include; the UK, Bahrain, Thailand and Australia. Within the UK Hertel operate from
Middlesbrough (Head Office), Grimsby, Pembroke, Runcorn and Westlake’s. From these sites Hertel
employs near to 10,000 people.
(2) What are Hertel’s Objectives?
Hertel’s objectives are to provide products and services that meet their client’s objectives while at the
same time remaining competitive and generating a profit.
(2) What are fiscal and monetary policies and who manages and reviews these policies?
Fiscal policy relates to how governments spending and tax accumulate to impact demand and the
economy. Expansionary fiscal policies are how the government attempts to increase the accumulation of
demand which will usually involve higher government spending with a reduction of taxes which will
result in a larger deficit in the budget. Deflationary fiscal policies are how the government can attempt
to decrease the accumulation of demand and will be contrived of lower spending and an increase in
taxes which will result in a reduction in the budgets deficit.
There are two types of taxes; direct taxes and indirect taxes. Direct taxes are paid from individuals and
businesses on their income and profits. For example, direct taxes include; corporation tax, income tax
and national insurance. Whereas indirect taxation is when the tax is taken indirectly from individuals
and businesses. For example, indirect taxes include; VAT, excise duty and air passenger duty.
Monetary policies involve the influence of the supply and demand for money through interest rates and
other monetary tools at the Bank of England’s disposal. The aims of monetary policy are to attain low
inflation rates to promote economic growth. Monetary policy can be largely influenced by changing
interest rates if the bank of England felt that the economy was growing too quickly and inflation was
increasing, then they could increase interest rates to lessen the demand upon the economy. During the
recession of 2008-2012 the Bank of England pursued quantitative easing which involved increasing the
money supply to increase demand.
Fiscal and Monetary Policies.
(1) Introduction.
This report is to assist Hertel in their understanding of government fiscal and monetary policies and
what the impacts will be upon the business, the research I will be collecting will relate to policies in 2016
and current 2017 fiscal and monetary policies.
(1) Who is Hertel?
Hertel has established operations in Europe, Caspian, Asia, Australia and the Middle East, Hertel works
for customers in the Oil and Gas, Process and Energy industries. Hertel offer services for many different
areas of the business such as the building of new assets, maintenance of buildings, shut downs,
modifications and decommissioning. The Purpose of Hertel is to provide services to clients that operate
within the industries they offer their services to clients that are working on large scale projects and this
is what generates the company a profit. Hertel has been in business for over 120 years, originally
supplying seals and insulation materials by the use of ships. In the 1970’s Hertel was producing most its
turn over from insulating navy vessels however during this time there was a decrease in the frequency
of marine repairs which impacted Hertel’s turnover which resulted in many redundancies having to be
made. An expansion into Europoort (Rotterdam) allowed Hertel to grow providing oil and
petrochemicals, originally in the Netherlands and then Europe. Therefore, Hertel has so many disciplines
in the industrial service industry. Hertel has established operations in 18 different countries, these
countries include; the UK, Bahrain, Thailand and Australia. Within the UK Hertel operate from
Middlesbrough (Head Office), Grimsby, Pembroke, Runcorn and Westlake’s. From these sites Hertel
employs near to 10,000 people.
(2) What are Hertel’s Objectives?
Hertel’s objectives are to provide products and services that meet their client’s objectives while at the
same time remaining competitive and generating a profit.
(2) What are fiscal and monetary policies and who manages and reviews these policies?
Fiscal policy relates to how governments spending and tax accumulate to impact demand and the
economy. Expansionary fiscal policies are how the government attempts to increase the accumulation of
demand which will usually involve higher government spending with a reduction of taxes which will
result in a larger deficit in the budget. Deflationary fiscal policies are how the government can attempt
to decrease the accumulation of demand and will be contrived of lower spending and an increase in
taxes which will result in a reduction in the budgets deficit.
There are two types of taxes; direct taxes and indirect taxes. Direct taxes are paid from individuals and
businesses on their income and profits. For example, direct taxes include; corporation tax, income tax
and national insurance. Whereas indirect taxation is when the tax is taken indirectly from individuals
and businesses. For example, indirect taxes include; VAT, excise duty and air passenger duty.
Monetary policies involve the influence of the supply and demand for money through interest rates and
other monetary tools at the Bank of England’s disposal. The aims of monetary policy are to attain low
inflation rates to promote economic growth. Monetary policy can be largely influenced by changing
interest rates if the bank of England felt that the economy was growing too quickly and inflation was
increasing, then they could increase interest rates to lessen the demand upon the economy. During the
recession of 2008-2012 the Bank of England pursued quantitative easing which involved increasing the
money supply to increase demand.
