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their North Sea oil and gas supplies, but what happends when these supplies run out? Should the government interfere in these circumstances, or allow the multinational oil companies to make the crucial decisions? Another problem facing a government in modern Britain is dealing with regional development. Inevitably, at the present time, as Britain draws closer to Europe economically, the south east of the country is prospering while the north goes into relative decline. Should the government let this happen or should it try to reverse the flow of people and jobs to the south east. It is not an easy decision for a government to make because it doesnt seem right to let parts of the country decline while others prosper. To sum up, whatever decisions are made by a government they are bound to affect the business community. If taxes are increasing on products the producers profits will go down and jobs will be lost. If interest rates are lowered, business will borrow more from the banks, jobs will be created, but prices might rise and that means inflation. Whatever action a government takes it will have repercussions on the business community, whitch is why the captains of industry are so watchful and wary of their political masters.