Here's a basket for you Ken:
The country is about to enter into a prolonged phase of significant turmoil over Brexit. There's clouds looming on the horizon. Countless foreign businesses, based here in the UK are sitting waiting, considering their options. They are worried about how they will continue to attract the necessary skilled workers. They are wondering how Brexit will impact upon their ability to export to the EU, which is why many of them are based in the UK in the first place. They are worried about how they are going to contain their costs in order to remain competitive.
And Labour are proposing to unilaterally increase corporation tax to 7 points above the European average.
How many eggs do you want in that lunatic basket? Do you think it's just possibly the wrong thing to do? Do you imagine for one moment that we should be doing everything possible to encourage the likes of Nissan, Honda, Toyota, UBS, Deutche Bank, Astra Zeneca, GSK, Fujitsu, Mitsubishi, Hitachi to stay in the UK? Do you think that might be a good idea?
Or should we clobber them with more tax and employment costs? Which do you think is a good idea right now?
Bear in mind, if this hair brain labour idea falls flat, there's an even bigger great big coach and horses hole through their costings and spending plans.
Good question. Firstly can you reveal your source for 7% above the EU average?
Although it is interesting you used the term average knowing that most are in countries that are termed less developed and not in the picture.
Lets look at equivalents and you can stop running the country down. Germany 29.29%, France 33% and Italy 24%.
https://home.kpmg.com/xx/en/home/se...x-rates-online/corporate-tax-rates-table.html
I have picked those 3 as we are all in the top 10 economies. Now, moving up to 26% is not that bad is it? Seems more line with what our similar competitors are charging. In fact the top two are higher, so all those companies will not be jumping that quick.
I realise that the tories want to see us as an offshore tax dodge but that will not help us, the people living here. The brexit negotiations will be difficult but trotting about saying if we dont get our way its no deal and the equally moronic bad deal are setting us up for a fail. To get a good deal, both sides have to walk away with something. There will have to be give and take and compromise. Now, here is a thought, one of the gives we can deal with is corporation tax and the fact we know the EU are not happy with the threat of 17%. We can use that as a barter for other things that will benefit the country. We are happy we have the extra tax money, the EU will not see us as an offshore tax haven and the companies might as well stay as they would have to pay more if they went to France or Germany anyway.
Now you seem to think that employment costs, the biggest being paying the ungrateful wretches that work in those places, is a problem. Now, when we give those workers a rise and the companies rattle their jewelry and threaten to do one they will go to Germany and France and see just how much those workers earn. We are ten years behind them. Those companies will re-think when they see those end of the months payments in Europe. Of course they are happy paying us when Germany pay a minimum wage of 1,500 Euro.
http://ec.europa.eu/eurostat/en/web/products-datasets/-/EARN_MW_CUR Thats £1300 a month. Now with strong management and strong unions they have figured that out in Germany. Just think that extra money now flooding into the UK market from people working with a decent wage and buying gear. Now thats euros but a tenner is a tenner, well £10*37hours per week*4 weeks in a months is £1480 not much more than the German wage. Where do they move when they know the wage is the same there? Is it worth the move when corporate tax and wage is the same?
I know you are a remainer and that question has already seen the horse bolt. The tories let it bolt when Dave shat himself when Nige shouted at him. However, we are in that basket now and if the EU see us as happy to compromise on such things as the tax it is possible we can see that the financial market could keep moore of its assets here. Clearly it not a given but you have to thank the tories for putting in that basket.
It is indeed uncertain times but acting like a pissed prick at a funeral (not you, this government) and having seen the destructive and divisive ways of this tory government we will do much better with someone who understand listening is as important as talking and certainly better than acting the jerk as Boris, Gove and the rest of the clowns on the good ship UK that May runs and has us on full speed into an iceberg.
