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Originally Posted by Big Brian
hen we are trying to negotiate a good deal with the EU I'm not sure lowering Corporation Tax is the right move at this point. Later on, yes it would be great but the EU will see it as the first move in negotiations. The second point I agree with however, £100 million more has also been promised per week to the NHS. Where's the money coming from? I thought we were telling lies when we said the NHS would benefit from leaving the EU financially regardless of the amount quoted?
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Lowering corporation tax is an attempt to ensure businesses stay in the UK to offset recent events alongside our likely leaving the single market. It's not a negotiating position any more than the expected interest rate reduction to zero.
The EU won't be bothered by our corporation tax rate especially. They were bothered by Ireland's as it's within the Eurozone and EEA, while the likeliest course of events for right now seems to be that we won't be in the EEA due to opposition to freedom of movement.
If anything it'll be seen as the start of leaving rather than any negotiation. Beginning a divergence from the EU.
Where the money for Crabb's investment is coming from is in the article - borrowing.
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They plan to issue up to £20bn of long-dated bonds each year for five successive years to create the fund.
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