Blick Rothenberg director Alex Altmann shares his views on what the Autumn Statement could mean for Germany.
The forthcoming Autumn Statement announcement should hint to a more competitive tax system in move to show that a post-Brexit Britain will remain fully open for business.
Altmann made the following comments on what he believes the new Chancellor Philip Hammond could include in his announcement later this week:
- The UK has one of the lowest corporate tax rates among the G20 states and it is expected that tax rates will continue to fall in order to attract foreign investment. After Brexit, EU law will no longer apply and therefore the UK will not have to comply with state aid and other rules anymore, allowing it to create a real competitive business environment in Europe.
- The UK should at least match Ireland’s corporate tax rate of 12.5% if it is to compete in an international marketplace; such tax incentives would show that the UK is now more than ever open for business.
- The UK will continue to work as a global expansion hub. It is expected that the UK will exit the EU with a free trade agreement in place that will have restrictions on the access to the single market and might no longer be part of the customs union. The UK could enter into similar agreements with a number of countries soon after leaving the EU, including the US and China. These agreements will allow trade under better terms than the EU has in place with these countries, increasing the case for the UK as a global expansion hub. German and European companies could make use of this and set up businesses in the UK in order to trade globally under better terms.
- A weaker Sterling has made producing and selling from the UK more attractive and has given more incentives to invest. Economic policies should aim to bring the Sterling on par to the Euro to make the UK a real alternative as a manufacturing and global export hub.
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