[Merged]Brexit stuff

[AtW]

I read this as euro leaders pooing themselves over UK becoming even more attractive to businesses

What they are saying is that in the case of UK trying to do it they'll increase cost of exports to EU after Brexit.

[vetran]

What they are saying is that in the case of UK trying to do it they'll increase cost of exports to EU after Brexit.

so probably best if we make sure we aren't dependent on them!

[AtW]

so probably best if we make sure we aren't dependent on them!

By stopping all exports to EU?

[jamesbrown]

What they are saying is that in the case of UK trying to do it they'll increase cost of exports to EU after Brexit.

To understand that this is counterproductive would require an understanding of the relationship between tariff/non-tariff barriers and economic development. I'm not sure they have this understanding, so they might If we were sensible, we wouldn't respond.

That being said, I doubt they'll do much on CT. They've already got a plan to reduce CT to 17% by 2020, and I don't think they'll reverse that. Further reductions in CT don't really play well, politically. It's difficult to read Hammond and May at this point, though. Also, when we reach the AS, I suspect they won't be in a position as dire as the Grauniad might've hoped. Instead, I'd expect something on business rates in the AS. Even if they do reduce CT, as you say, they will claw that back through increased dividend tax or perhaps a more comprehensive approach to small businesses (e.g. look through), but probably not in the AS.

[GB9]

What they are saying is that in the case of UK trying to do it they'll increase cost of exports to EU after Brexit.

When Opel are claiming that cutting their working hours in Germany is down to Brexit the last thing they will want to do is make goods more expensive. That's why we will get a good deal.

[vetran]

By stopping all exports to EU?

no by arranging to export more o non EU countries and Buy from non EU countries.

[AtW]

no by arranging to export more o non EU countries and Buy from non EU countries.

Where? Two biggest markets in the world are USA and EU, everything else would not even addup to half of each of those, those who can't export to EU will become commercially unviable.

[AtW]

That being said, I doubt they'll do much on CT. They've already got a plan to reduce CT to 17% by 2020, and I don't think they'll reverse that. Further reductions in CT don't really play well, politically. It's difficult to read Hammond and May at this point, though. Also, when we reach the AS, I suspect they won't be in a position as dire as the Grauniad might've hoped. Instead, I'd expect something on business rates in the AS. Even if they do reduce CT, as you say, they will claw that back through increased dividend tax or perhaps a more comprehensive approach to small businesses (e.g. look through), but probably not in the AS.

Business rates will be going up big time next year - re-evaluation AND also Osborne gave councils 100% of business rates with allowable annual increase much higher than council tax, Hammond won't change it because this allows Govt to save on council grants and shift some of business tax burnen to local authorities.

Hammond needs to cut Corp Tax big time, 15% next year and maybe 10% by 2020. Sadly scumbags will increase dividend tax to match it, so I don't hold my breath - they seem to be hell bent to make people change tax residency.

[jamesbrown]

Business rates will be going up big time next year - re-evaluation AND also Osborne gave councils 100% of business rates with allowable annual increase much higher than council tax, Hammond won't change it because this allows Govt to save on council grants and shift some of business tax burnen to local authorities.

Hammond needs to cut Corp Tax big time, 15% next year and maybe 10% by 2020. Sadly scumbags will increase dividend tax to match it, so I don't hold my breath - they seem to be hell bent to make people change tax residency.

We'll see. I don't think May has a problem dissociating herself from Gideonomics. The Fail has been extra whiny about business rates in recent months, they're better directed towards small businesses that aren't perceived as being avoiding smegs, and reductions in CT, in particular, don't fit well with May's economy that works for everyone blah. Hammond is a fiscal hawk, so he'll probably want directed and proportional intervention, not a scatter-gun. Perhaps CT, if inward investment seems to have fallen off a cliff, but they already have a schedule of reductions and it's questionable whether CT makes much difference in the short-term, and non-Brexit means non-Brexit is working out pretty smoothly so far (the real test is when it actually happens, of course).

[AtW]

We'll see. I don't think May has a problem dissociating herself from Gideonomics. The Fail has been extra whiny about business rates in recent months, they're better directed towards small businesses that aren't perceived as being avoiding smegs, and reductions in CT, in particular, don't fit well with May's economy that works for everyone blah. Hammond is a fiscal hawk, so he'll probably want directed and proportional intervention, not a scatter-gun. Perhaps CT, if inward investment seems to have fallen off a cliff, but they already have a schedule of reductions and it's questionable whether CT makes much difference in the short-term, and non-Brexit means non-Brexit is working out pretty smoothly so far (the real test is when it actually happens, of course).

May/Hammond will keep the main tax increases in place, but will spend more money by loading up on "cheap" debt and perhaps even getting BoE invest directly into big projects like HS2, getting that off budget would make a lot of things easier to bribe electorate.

We'd be lucky if taxes don't increase even further, especially on dividends or CGT.