Reply to: UK to reduce taxes to undercut EU

[Mordac]

No, I was making the point that a Tory minister said something definitely wouldn't happen, which means it will happen.

We can but hope...

[WTFH]

You make cutting taxes sound like a bad thing.

"The Momentum is strong in this one..."

No, I was making the point that a Tory minister said something definitely wouldn't happen, which means it will happen.

[Mordac]

Brexit: UK will not cut taxes, says Philip Hammond - BBC News

Well, they say they won't which means they will.

You make cutting taxes sound like a bad thing.

"The Momentum is strong in this one..."

[scooterscot]

But the UK is irrelevant to the EUmpire!

Through its own choice.

[PurpleGorilla]

If they went for that route it would swallow up the tariff margin quite happily. But in truth what the EU need to fear at the moment is the prospect of their toys becoming less unattractive to a market that is one of their largest.

https://fullfact.org/europe/where-does-eu-export/

But the UK is irrelevant to the EUmpire!

[scooterscot]

My rationale is that we are too dependent on retail sales.

Too dependent on cheap imports. When cheap imports are no longer affordable the whole show comes to a quick sharp stop.

[bobspud]

I think the lever we will have to pull is VAT. 20% to 10%.

My rationale is that we are too dependent on retail sales.

If they went for that route it would swallow up the tariff margin quite happily. But in truth what the EU need to fear at the moment is the prospect of their toys becoming less unattractive to a market that is one of their largest.

https://fullfact.org/europe/where-does-eu-export/

[Bluenose]

He said we'd keep a European model, but that we are in the middle of the pack.

Gives significant room to undercut.

I think the lever we will have to pull is VAT. 20% to 10%.

My rationale is that we are too dependent on retail sales.

[woohoo]

Who do you think will pay those tariffs?

The UK is not the biggest car buyer in the world. In fact the UK accounts for about 1 in 7 of all German car sales (https://www.vda.de/en/services/facts...s/exports.html). That means 85% of German car sales will be unaffected by a UK trade tariff.

So, 15% of German car sales could be affected - in an economy that is dependent on exports.

Regardless, think about what you are saying. There is no reason for a trade deal to not be struck other than the EU wants to keep EU countries in fear so they dont leave the EU. How mad is that.

[PurpleGorilla]

I think you just need to watch and wait for the part where we decide that the divorce bill is not worth paying and that Germany and France are going to have to find the cash to plug our contributions and that the European Car manufacturers are going to have to add WTO tariffs costs to their cars.

I think you might find that regardless of the rhetoric there are quite a few Germans sweating at the moment.

Maybe even a new ultra tough diesel emissions test and standard...

[bobspud]

Once the UK is cut off from the main land, the cars will become worse and worse as they did during the 1960's, and eventually "Red Robo" will reappear, probably under a Corbyn government.

Protectionism always fails in the end.

You need to go and look up a company called Meritor... They are part of a group of companies that build pretty much all the worlds car components Their reach is pretty all encompassing. I don't think the quality will suffer at all.

You are of course right that protectionism is bad but thats why its great to have the big red button to push. There is a rather dumb attitude that the UK has nothing to offer or use in defence. That could not be further from the truth.

[WTFH]

Just dumped my SL for a Mini (built up the road in Cowely) I can let my daughter drive it, it costs over 50% less to run than the Merc and I am more than happy to have made that change.

Ah, you got rid of a Merc and bought a BMW.
The Diesel engine is pretty good in them - is it the PSA one or the Austrian one they use now?
The electric version is an interesting one too.

[WTFH]

I believe you are looking for these statistics...

Motor vehicle trade between the UK and its main EU partners | ACEA - European Automobile Manufacturers' Association

10% tarifs on 25 billion Euro's is going to make a significant dent. I really don't know why anyone would think otherwise...

Who do you think will pay those tariffs?

The UK is not the biggest car buyer in the world. In fact the UK accounts for about 1 in 7 of all German car sales (https://www.vda.de/en/services/facts...s/exports.html). That means 85% of German car sales will be unaffected by a UK trade tariff.

[BlasterBates]

Just dumped my SL for a Mini (built up the road in Cowely) I can let my daughter drive it, it costs over 50% less to run than the Merc and I am more than happy to have made that change. If I wanted to piss more money up the wall and gone for another 80k car to depreciate like a brick I could have picked any of the Jaguars in the range as well as Aston Martin. I dont think theres a problem finding non EU mainland cars to drive. Even if they are no longer owned by UK companies.

I might even look at a Tesla Model X when the wife car goes next year.

The Model 3 will be a no-brainer for most company car owner that would have owned a 3/5 C or E class. I really don't think the German car options are as strong as they once were when you take the diesel problems into account.

Once the UK is cut off from the main land, the cars will become worse and worse as they did during the 1960's, and eventually "Red Robo" will reappear, probably under a Corbyn government.

Protectionism always fails in the end.

[bobspud]

British people have a lot less choice of cars built in Britain than EU cititzens will have. In the EU you can get all and any type of car and you can easily avoid buying a British built car. If you're British you will more or less be restricted to buying either a Japanese car or Vauxhall. That means the effect of tariffs will simply mean British people will be out of pocket as many will still be buying European built cars and the Europeans who previously bought Japanese cars will switch to French or German cars.

It is pretty clear in a "car war" Britain will lose.

Just dumped my SL for a Mini (built up the road in Cowely) I can let my daughter drive it, it costs over 50% less to run than the Merc and I am more than happy to have made that change. If I wanted to piss more money up the wall and gone for another 80k car to depreciate like a brick I could have picked any of the Jaguars in the range as well as Aston Martin. I dont think theres a problem finding non EU mainland cars to drive. Even if they are no longer owned by UK companies.

I might even look at a Tesla Model X when the wife car goes next year.

The Model 3 will be a no-brainer for most company car owner that would have owned a 3/5 C or E class. I really don't think the German car options are as strong as they once were when you take the diesel problems into account.