CRESC Public Interest Report - WHERE DOES THE MONEY GO? Financialised chains and

This task is essential because the combination of projected increases in the numbers of older people over the next 20 years and the limitations on public funding means that the current system is unsustainable on a fiscal basis, leaving aside the problems created by the financialised chains. [...] (With unlimited liability, for instance in a partnership or as a sole trader, the partner or sole trader is liable personally for all the liabilities of the business.) In a limited company, for instance, if the investors finance the acquisition of a business with £1 of share capital and £4 of borrowing all the upside goes to the investors, but their loss is limited to their investment of £1. [...] The arguments about the repercussions of crisis in social care for the NHS were clearly designed to gain the attention of ministers; and the media reported a lobbying offensive in autumn 2015 in the form of interviews with key industry figures, open letters, think tank reports and public requests for meetings with ministers. [...] If the deal comes good, the capped returns on debt lever up the return on equity for the owner; if the deal goes wrong, the operating business fails because it cannot meet debt payments and the business passes to the debt holders with the owner losing the equity stake. [...] For example, Barchester Healthcare is a subsidiary of Grove Ltd, which is registered as a public company in the Bailiwick of Jersey; and Four Seasons Healthcare is a subsidiary of London 58 which is registered in the Cayman Islands.33 The movement of cash upwards (or the burden of non- cash obligations crystallised at sale or liquidation) can then be arranged at the convenience of the owner throug.