Skip to main content

UK to create more low tax zones.

 

Cargo containers
Jeremy Hunt will use his Budget tomor­row to offer close to £1bn for 12 new lowtax zones designed to drive busi­ness growth and reduce regional dis­par­it­ies. The Treas­ury said in a state­ment that the money could be used to offer tax incent­ives or to improve skills, provide spe­cial­ist busi­ness sup­port, improve the plan­ning sys­tem or for local infra­struc­ture in the zones. The tax breaks could include relief on stamp duty, busi­ness rates or employer national insur­ance con­tri­bu­tions, accord­ing to people famil­iar with the nego­ti­ations. The other eight will be in the East Mid­lands, Greater Manchester, Liv­er­pool City Region, North East, South York­shire, Tees Val­ley, West Mid­lands and West York­shire.

Sep­ar­ately, Greater Manchester, the West Mid­lands and Glas­gow will also share a fur­ther £100mn for R&D invest­ment, build­ing on exist­ing «innov­a­tion accel­er­at­ors» already being piloted in those areas. The accel­er­at­ors, announced last year, have already shared an ini­tial £100mn of invest­ment to cre­ate part­ner­ships between uni­versit­ies, col­leges, coun­cils, busi­nesses and may­ors, which have been devel­op­ing pro­pos­als to cre­ate new spin­outs from research projects. Cur­rently local lead­ers, includ­ing may­ors, must bid for project fund­ing from White­hall through scores of dif­fer­ent pots, in a cent­ral­ised model widely cri­ti­cised by regional lead­ers, who say it engenders a «beg­ging bowl» cul­ture. However, a push by West Mid­lands Con­ser­vat­ive mayor Andy Street for fur­ther fiscal devol­u­tion, which would have included retain­ing a per­cent­age of VAT and cor­por­a­tion tax raised in his area, is said not to have been agreed by the Treas­ury, said sev­eral people famil­iar with the devol­u­tion nego­ti­ations.
Labels:

Comments

  1. Jim14 March 2023 at 09:58

    In the US, republicans are pushing for more advantages for businesses and usually, those regions flourish. I think the UK can do the same and attract small business owners and bigger companies with the right measures.

    ReplyDelete
    Replies
    1. Zackary14 March 2023 at 12:03

      Yeah but that took a long time and they have a different mentality. We still need 20 years in the UK to get to where they are today. But it's a good step in the right direction.

      Delete

Post a Comment

Cloud Bookkeeping

US FED rate rise.

  The US Federal Reserve officials have indicated that they plan to resume increasing interest rates to control inflation in the world's biggest economy. During the June meeting, the Federal Open Market Committee reached a consensus to keep interest rates stable for the time being to evaluate whether further tightening of policy would be necessary. However, the majority of the committee anticipates that additional rate increases will be required in the future. The minutes of the meeting have recently been made public. According to the minutes, most participants believed maintaining the federal funds rate at 5 to 5.25 per cent was appropriate or acceptable, despite some individuals wanting to raise the acceleration due to slow progress in cooling inflation. Although Fed forecasts predicted a mild recession starting later in the year, policymakers faced challenges in interpreting data that showed a tight job market and only slight improvements in inflation. Additionally, officials gr...
Post a Comment
Read more

EU business slide.

  S&P Global’s flash eurozone composite purchasing managers’ index, a key gauge of business conditions for the manufacturing and services sector, fell 1 point to 47.1, figures showed yesterday. That is its lowest level since November 2020 and the fourth consecutive month below the crucial 50 mark separating growth from contraction. One of the few bright spots in the survey was that companies in all sectors reported a slight easing of cost pressures, price growth and supply chain constraints. However, prices charged for goods and services still rose at the sixth fastest rate since such data started in 2002. Jobs growth increased marginally from October but remained low compared with the past 18 months. Following a few months of falling price pressure in manufacturing and services, the October print shows an overall stabilisation said Jens Eisenschmidt, chief European economist at Morgan Stanley. However, German businesses, at the hub of Europe’s energy crisis, reported that manu...
1 comment
Read more

Tariffs on UK electric cars.

  The European Commission has confirmed that it will continue with its plan to impose tariffs on electric cars exported between the UK and EU starting next year. This is due to the "rules of origin" requirement that mandates EVs traded across the English Channel to have 60% of their battery and 45% of their parts sourced from the EU or UK or face a 10% tariff. A senior Commission official, Richard Szostak, recently informed parliamentarians from the UK and EU that the bloc's battery investment has significantly declined, making the tariffs necessary to encourage domestic production. In 2022, the EU's share of global investment in battery production shrank from 41% to only 2% after the US offered substantial subsidies through its Inflation Reduction Act. Starting in 2024, car manufacturers in the UK will need to have 22% of their sales come from zero-emission vehicles, which means they may need to import EVs from the continent to meet this requirement. If EU carmakers ...
Post a Comment
Read more