D2 Suggest and justify elements of fiscal and monetary policies that would help a selected
business to achieve its objectives.
Both Fiscal policy and the monetary policy aim to stable and support the economy to grow and
expand. As we know, fiscal policy is the way or approach that the government uses to control its
spending and taxation in order to influence the economic conditions of the country, including
demand for goods and services, employment, inflation and economic growth. However, unlike fiscal
policy, the monetary policy is the process of drafting, announcing, and implementing the plan of
actions taken by central bank of the country or the government in order to control and influence the
amount of money within the economy and how much it cost them to borrow money to cover its
expenditure. As resulting of using these two policy the government could indirectly helps Jaguar
Land Rover to achieve its objectives and increase their sales and profits within and outside the UK.
In order to understand Jaguar Land Rover and how it could achieve its objectives using the help of
both fiscal and monetary policy, it is important to understand it’s the organisation and how it is
operating. Jaguar Land Rover limited is a British multinational automotive company that brings
together two highly prestigious British car brands. Jaguar Land Rover limited is a combination of two
companies: Jaguar and Land Rover, after Tata Motor acquired Jaguar and Land Rover from Ford in
2008, it merged the two markets into a single company. Therefore, it is a limited company that
designs, develops, manufactures, markets, and sells various automotive vehicles in the United
Kingdom, the United States, China, rest of Europe, and internationally. What makes Jaguar Land
Rover special and unique is the fact that it offers luxury saloons, specialist sports cars, four wheel
drive off-road vehicles, and related components and services. Similarity to any other companies
around the world, Jaguar Land Rover ultimate objectives is to make profit and increase its sales in
general. However, it have its own separate corporation objectives, and according to the company’s
annual report 2017/18, some of its main objectives are:
Developing smarter, safer, cleaner technology, by investing in skilled individuals with up
digital and educational knowledge.
Creating a world of sustainable smart mobility with a significant economic, social and health
benefit, by achieving a 45 per cent reduction in European fleet average tailpipe CO2
emissions by 2020.
To invest, expand and operate in a new or another market such as the US.
These objectives are only a few aims of the company itself alongside with many other they are will to
achieve.
In order for Jaguar Land Rover to develop smarter, safer and cleaner technology, the UK
government’s decisions on both fiscal and monetary policies can have a great impact on achieving
this goal. They can reduce taxation on both direct and indirect taxes which will benefit the company
as they will save more money to invest in the their technology. For example, if the government
decided to decrease the business taxes such as Corporation Tax or VAT, then Jaguar Land Rover will
have to pay fewer taxes and therefore have more profit. This will help the company, as they will be
able to spend and invest more on their technology and bring people that are more skilled in the
industry in order to achieve this aim. In addition, we also have seen the government contribution in
this matter, as according to UK Government Website, the Chancellor of Exchequer, Philip Hammond,
has announced the Budget 2018, which cover a few important statement that could impact Jaguar
Land Rover dramatically. One of the announcement of the budget influence and increase to annual
investment allowance from £200,000 to £1m for two years. This will benefits the company as by
using this allowance, Jaguar Land Rover can deduct the full values of qualifying plant and machinery
