Business Environment

Fiscal policy is the deliberate alteration of government spending or taxation to help achieve desirable macro-economic objectives by changing the level and composition of aggregate demand. This will effect for 3i Group Plc as the company is a public company. If UK government decreases their taxes the people or the consumers have more money. Therefore 3i Group Plc has more customers. And also 3i Group can invest on expanding the business. In other hand if UK government increases their taxes that will horribly effect the business of 3i Group due to lack of customers.
In fiscal policy system the government decides to increase their spending on infrastructure projects they need people to fulfill the projects. So public companies like 3i Group Plc gets more businesses from government projects and can make a very good profits. But those projects are short term jobs, once the projects are completed 3i Group will have to move on other activities. For example: if the government is launching projects to build a new bridge, it creates short term jobs for businesses especially public firms like 3i Group Plc. 3i Group have to hire more employees to finish the projects. Once the project is done the workers of 3i Group Plc would have no more works and the company would face difficult days in financial aspects.

Impact of Monetary policy for 3i Group Plc
Monetary policy involves altering base interest rates which ultimately determine all other interest rates in the economy or altering the quantity of money in the economy. There is a committee name called Monetary Policy Committee (MPC) in UK who has all responsibilities for monetary policy in UK.
During a monetary policy if MPC decides to reduce the interest rates 3i Group Plc has its peak time for business. Because customers or consumers spending more money for their needs and wants.
If interest rates are raising that can effect negatively for 3i Group Plc, because customers have less money to spend due to that the...