The decision by Astra Zeneca to put a major new investment into Ireland where they charge 15% business tax compared to our new rate of 25% shows just how stupid our high tax policy is. Instead of getting 15% of a good stream of profits over many years alongside income tax and VAT on all the well paid ,jobs they bring, the UK has settled not to have any of it. 25%  of nothing is nothing.
The same folly is evident in the North Sea. In a rush to get a bit more revenue this year with high and erratic windfall taxes, the government has delayed or lost important investments in new gas and oil fields. Instead of generating more well paid jobs and plenty of tax revenue on the output over the next decade or two, we opt to import and to pay huge taxes away to foreign governments on all the imports. Just one of the fields not currently going ahead would generate a gross ÂŁ25bn over its life, with a lot of that passing directly to the Treasury in taxes.
Ireland makes my case perfectly. With a much lower rate of business tax than us Ireland enjoys a much higher proportion of its revenues from business tax because so many businesses go there to set up an HQ and to invest in plants and offices. Ireland has a much higher per capita national income than us thanks to all the foreign investors congregating there to create jobs and spend money. The UK should copy them with a 15% tax rate as Jeremy Hunt himself proposed last summer. We too would get more revenue and have higher per capita average incomes. Enthusiasts for the EU are always urging us to align more with our Irish neighbours. This would be a great way of doing just that.
When Margaret Thatcher and her Chancellors cut higher rate income tax from 83% to 60% and then to 40% the amount of income tax paid by the better off rose in cash terms, rose in real terms, and rose as a proportion of total income tax. What’s not to like for all involved? When George Osborne drove UK corporation tax down gradually to 19%, the take from company tax went up, not down. So why do OBR and Treasury models tell Ministers any cut in tax rates will lead to a reduction in tax revenue we cannot afford? History and modern experience suggests otherwise.
February 13, 2023
Q,E,D
February 13, 2023
The Laffer curve has its optimal point at extremely variable levels according to available avoidance alternatives, likelihood of enforcement, the perceived efficiency of public spending, and many more factors.
The simplistic approach described here has been thoroughly debunked by practical experience, empirical evidence.
February 13, 2023
Debunked as recently as last Autumn, under Truss
February 13, 2023
Nothing about Miss Truss’s programme was debunked because it wasn’t allowed to happen.
February 13, 2023
And so we are here to tell the tale…
February 13, 2023
Codswollop.
February 13, 2023
Provide some.
To take but one example – when we had very high tax rates in the 1960s and 1970s, anyone who made serious money (pop stars, actors etc.) moved abroad. Along with vast numbers of doctors etc.
February 13, 2023
The Kansas Experiment.
February 13, 2023
The experiment wouldâve been a success if theyâve also reformed the spend and expenditure of state government at the same time âŠthereâs always two halves of an equation
February 13, 2023
If he does provide evidence it will be a first time!
February 13, 2023
Well everything is going to plan.
The government doesn’t want any industry because it will delay net zero. Never mind that the production is offshore, we can import motored, except when we have no foreign exchange to pay. Then you can introduce exchange controls, remember them, that will stop people travelling
Your not getting the big picture John.
February 13, 2023
I see today non renewables are providing 74% if generation
We must be a whisker from blackouts as demand is only 30gw.
Plenty more industries to chase offshore in the push for net zero and bankruptcy
Keep it up John, your in a winner. (Not)
February 13, 2023
Pleasant weather, homes and school heating systems off, lots of infrastruture change going on – much less consumption needed. Its half-term.
February 13, 2023
The 26% of renewables absurdly includes burning loads of young coal (wood) imported from the US on diesel ships. Which causes more CO2 than coal does. Total insanity.
February 13, 2023
IW ;
For those who believe that hydrogen could be used for energy storage when the wind doesnât blow – created through electrolysis using “excess” wind power (and hence the proposed levy on energy bills to subsidise hydrogen production) – a simple calculation shows that it will require 8.5 GW to 14.5 GW of installed wind capacity for each 1 GW of reliable/dispatchable power.
February 13, 2023
Sir John pease edit ‘your’ instead of ‘you’re’. It would be alright if your didn’t mean something else. Ian please note.
February 13, 2023
Weâd be in the shit if it wasnât for the imported, (10%) 17:30hrs, energy from France âŠand it pains me to say that
February 13, 2023
Of course the Laffer point varies hugely depending on the tax system complexities, mobility of the tax payers, the available lower tax alternatives like Ireland, Isle of Man. A new tax may also raise money in the first year but then lose it in the second and subsequent years as businesses leave, expand elsewhere, close down or just have insufficient money left after taxes to invest, expand or compete.
In a few paragraphs one can hardly analyse the full & absurdly complex UK tax system and Laffer points. It’s about 12.5 times the number of words in the Bible which is ~ 800,000 words it seems. But from the current position overall the tax system is well above the Laffer point currently.
Anyway the Laffer point is not the optimum for the benefit of the people or the country. It is the point to raise the most taxes. The optimum for the people is way below this. The point where government has enough to do the rather few things they can do better than individuals, businesses and charities can.
One thing for sure Labours (and Goveâs) VAT on school fees and the abolition of Non Dom status would raise far less tax not more and do the country huge net harm.
February 13, 2023
I don’t think Astra Zeneca could have seen your ’empirical evidence’ NLH – because in practice, they’ve gone elsewhere.
February 13, 2023
Astra Zeneca also made reference to the UK’s VPAS scheme and “market access” in reference to their decision. Hmm. I wonder what it could be about being based in Ireland that might be advantageous from a market access perspective compared to the UK…
February 13, 2023
Since they were planning to invest in the UK until Mr Hunts intervention, i don’t think they were the main considerations Peter.
February 13, 2023
could it be not having to reach France?
February 13, 2023
What sources are you using to back up your empirical evidence claims? From which Country? Whose practical experience?
February 13, 2023
Twaddle.
You expound on the Laffer curve as if you have deep knowledge of a detailed method – which shopws your ignorance and mal intent, because…
The Laffer Curve was simply a rough graph which Mr Laffer drew on a restaurant napkin in a meeting with US Treasury officials, merely to pictorially illustrate his point re tax rates overall versus tax take. It was never formalised, it’s a concept not a methodology.
February 13, 2023
It is a statement of the blinding obvious. If you tax at 0% you get no tax, if you tax at 100% no one can afford to (or will want to) work so you get no tax. Somewhere in the middle you obviously get the optimum tax take. We should not however go for optimum tax take rates should be far lower than this to benefit people and the economy best.
Think of it as a service charge on a block of flats. Should the charge just cover what maintenance is required or be so high that, were it even higher, the tenants would have to abandon their flats and stop paying the service charges. We are at or even above this point under deluded socialists Sunak & Hunt.
February 13, 2023
Oh and even if it did have such an optimal point, with taxes at the highest they’ve been for decades, it is quite clear that the optimal point is *not* where we are now.
February 14, 2023
There is anyway no such thing as one optimum on the Laffer curve. Why should tax on true manufacturing be the same as tax on, say, BTLs, the one on PAYE employeesâ salaries the same as the one on dividends, the one on CG by an owner-entrepreneur the same as one on CG by a rentier, the one for a resident the same as the one for a non-dom, ⊠?
February 13, 2023
You seem rather negative every day on every single point Sir John ever makes. Is this a true disagreement of minds or just blatant left wing antagonism to common sense?
February 14, 2023
âCompare: How generous is France in granting citizenship to foreigners?â 22/03/2022.
âFrance introduces new simplified process for citizenshipâ, 13/02/2023.
France accepted 63,859 refugees in 2021. The UK accepted 20,552 refugees in the year ending March 2020, 12,968 the year ending March 2021. As for the âillegalsâ ask Priti and Suella, they must have the statistics.
February 13, 2023
Good morning.
Sir John, we cannot cut taxes as we have high inflation and that is eating into the economy. Plus. The UK Government needs to be seen to want to tackle inflation because if they don’t they might spook the markets driving the pound down.
This is what happened when you elect a spendthrift (Johnson) as party leader and PM in order to save yourselves from the mess created by the disastrous and inept Theresa May MP.
Your colleagues have left your party and nation in a mess. And that roof, Gideon Osborne talked about still needs mending. đ
February 13, 2023
Of course we can cut taxes ….. but we also have to cut spending and there are plenty of opportunities to do that.
They could start by chartering a couple of planes and operating four flights a day returning the Albanian criminal migrants to their own country.
February 13, 2023
Donna
I have been championing spending cuts on this site longer than most. Much like our kind host I have seen precious little of it because the Tories are terrified of the Left. So taxes it is.
February 13, 2023
@Mark B It is certainly the Boris Johnson mess that the Country is being asked to clean up in ‘self harm’ fashion
February 13, 2023
Ian
People (certainly around where I live) were too busy soaking up the sun and getting, what they thought for the time, a free paid holiday. Not so ! All that money Johnson and Sunak had printed was going to be spent.
And didn’t Amazon do well ‘He says in his best Bruce Forsyth voice.’
February 13, 2023
sounds like a good plan
February 13, 2023
Beautifully put! 25% of nothing is nothing!
February 13, 2023
Indeed. Add in the point that international companies will do all they can to minimise tax due and you soon realise a high corportation tax rate is pointless as a means of raising government revenue.
Much better to follow Eire, set a low corporation tax rate and get more tax on worker’s incomes.
Better still, cut government spending and reduce all tax rates…
February 13, 2023
I wonder how the tax take differs between an essential product purchase such as food.
How much do British supermarkets return in UK corporation tax compared to Aldi and Lidl?
Also are all say Sainsburys sales and tax from all around the UK only counted as London/SE GDP?
Do we make Aldi have a registered UK office and pay UK taxes on all their earnings in the UK without being able to offset against ROW losses or growth?
February 13, 2023
Sales and tax for an organisation like a supermarket are distributed across the UK based on factors such as the distribution of branches/offices, where workers reside etc. The ONS website provides information about how they perform these calculations.
Aldi do have a registered UK office. It’s in Atherstone in Warwickshire (a simple Companies House search will find it). You can also find their published UK accounts on Companies House.
February 13, 2023
Thanks, Peter. Do you know the answer ‘do Aldi and Lidl pay total corporation taxes on their UK sales in the UK’? If not, I’ll have to research it all at the weekend. I’ll let you know my findings.
Reply All trading companies in the UK pay corporation tax here on their profits here, not turnover.
February 13, 2023
Ah ok, thank you. Iâll check their recorded profit and compare it to Tesco and Asda, because the German supermarkets could offset all sorts of management charges back to their main corporation HQ couldnât they?
February 13, 2023
0% of billions is also nothing.
February 13, 2023
Yes, NLH it is easier to hit the companies stuck here than charge the digital giants who are reportedly avoiding ÂŁ1.5 billion + in tax on their profits, then again wouldn’t the UK customers just pay for that extra tax so it just keeps it out of the government’s hands and in the consumers.
February 13, 2023
And us as an ex-EU member STILL pay in ÂŁbillions.
February 13, 2023
We haven’t left
February 13, 2023
Then the disruption is just spite!
February 14, 2023
Source: The BBC July 2022 How much does the UK owe? (to the EU).
Originally, the settlement was estimated to be about ÂŁ39bn. Some of this was paid as the UK continued to make its regular contributions to the EU budget throughout 2020, under the terms of the deal. From January 2021, the estimated bill was ÂŁ25bn left to pay by 2057, according to the Office for Budget Responsibility (OBR), almost ÂŁ18bn of which will be paid in the first five years.
2021 ÂŁ7bn
2022 ÂŁ5.5bn (but I think they charged us the extra ÂŁ2.5bn in a made-up fine about Chinese imports that I’m sure no-one else in the EU does! Yeah right. Those Chinese companies only supplied the UK did they?)
2023 ÂŁ3bn
2024 ÂŁ1bn
So you see they need another ÂŁ5bn off us this year and they’re blaming the rise in pension costs; it’s codswallop, absolute nonsense. Is the EU parliament just going to become one big fat pensions black hole like the rest of our public sector pension promises? In this way Toynbee is right these guaranteed final salary pensions are going to suck the life blood out of everyone else.
February 14, 2023
Thats Shocking ….don’t remember a deal being on the referendum paper
February 13, 2023
The Treasury does the bidding of the EU and the EU doesn’t want to see UK tax rates fall to a point that drags international capital into the UK and away from continental Europe. That much is obvious to me and I’m an idiot. It’s disturbing that others cannot see this obvious truth
It’s all very simple. If Labour achieve power the UK is back in the EU with the help of the SNP and some Tory snakes whose identity will no doubt be known to Brexit Tory MPs. Brexit will become a criminal offence
At the next GE the issue should be the UK’s membership of the EU. Brexit is in the cross-hairs of the establishment and they’ll make sure it happens
February 13, 2023
“Sunak’s Northern Ireland Sell out” by Harry Western in ‘Briefings for Britain’ does not give reassurance to those of us who voted in 2016 to take back sovereignty of the UK. Dated 9/2/2023, the article begins:
Media reports suggest âa dealâ to reform the Northern Ireland protocol may be close. But donât be fooled. The recently floated proposals would not represent some kind of sensible compromise but would rather be a capitulation by the UK on all the key points at issue. They would do nothing to ease the problems caused for the Northern Ireland economy by the protocol and might even worsen them. The concern is that Sunakâs government is trying to repeat what Theresa Mayâs did by dressing up a surrender deal as a âwin for Britainâ.
February 13, 2023
A white flag is Internationally recognised.
February 13, 2023
Mary M, any customs border at all within our country, whether with green and red lanes or not, is not to be countenanced. What other country would “compromise” with a foreign power over who runs part of that country, without a shot being fired?
February 13, 2023
The EU/Southern Ireland ideal compromise is of course for them to own and run N Ireland but for Great Britain to continue paying the bills.
February 14, 2023
Yes, i believe that is what is going on too Rose.
February 13, 2023
I’d be surprised if we didn’t capitulation
February 13, 2023
Well I must be an Idiot too DOM because it seems very obvious to me as well.
It’s almost as if some people want this Country to fail. Maybe we should get everyone together at Ditchley Hall to discuss the matter?
February 13, 2023
They take us all for idiots, I think we all know that by now. Will we be presented with a brief of what they discussed I wonder & give us an inkling of what improvements they consider being required. This idiot thinks the CT rate should be left as it is – 19%. They just follow. Are any of them or their comrades attending today’s (13-15 Feb ) World Government Summit 2023 in Dubai – “Shaping Future Governments” being its theme.
February 13, 2023
“Brexiters claim âselloutâ after Tories discuss rapprochement with EU Nigel Farage, John Redwood and Lord Frost rail against news of senior Tories (inc Gove) joining “PRIVATE” cross-party summit to tackle failings of Brexit” Guardian article today. Entitled: âHow can we make Brexit work better with our neighbours in Europe?â
Attenders from Labour included the shadow foreign secretary, David Lammy, and the shadow defence secretary, John Healey. Peter Mandelson, the former Labour cabinet minister, chaired the event.
February 13, 2023
Conservative politicians are unable or unwilling to make an effective case for lowering taxes.
I accept the main points made in today’s post, but I reckon a majority the public at large do not. The messages they hear about taxes are very different, because of our left wing MSM, political parties and their allies. That includes the Conservative Party, which is happy to engage in what it hopes are short term vote-winning stunts like windfall taxes.
Our society needs a right wing Party that has a clear ideology. One that provides a real alternative to the left, with genuinely honourable people to lead it. This can only emerge after the wipeout at the next election, and the years of destructive turmoil that follow.
February 13, 2023
+100
February 13, 2023
Rather than a right wing government, can we not have an alternative centre ground? The right wing balances the books with growth, the left wing with taxes and the centre ground with borrowing. How about balancing the books by cutting out waste? Nothing right or left wing about that.
February 14, 2023
Cutting out waste means people losing their jobs, the left won’t tolerate that, just look at rail unions railing against ticket booth cuts when digital ticketing took off.
February 13, 2023
Not Left. Not Right. Just right.
JF
February 13, 2023
The Government seeks to reduce inflation but keeps taxing high.
Prices increase to pay the tax, increasing inflation.
Just as Monty Pythonâs Mr Creosote didnât need a waffer thin mint, the UK doesnât need more tax to inflate to bursting point.
February 13, 2023
@Wanderer Yes
But lets forget the ideology – what we need is common sense politics, with 100% honesty thrown in.
February 13, 2023
Sunak and Hunt may have read PPE but have forgotten any of the economics. One thing is for sure, they didn’t excel at mathematics.
February 13, 2023
NanT
Indeed, just got my tax code through for this coming Tax year.
Looks like the rise in the State Pension has used up all of my Tax free allowance, and so I will now be paying income tax on my State pension as well as anything else in addition.
Thus the Chancellor has already clawed some of the State Pension rise back in income tax !
Given allowances are to be frozen for a number of years yet, even more tax will be due each year.
Shows the power of Fiscal Drag as a way to increase the tax take.
February 13, 2023
You can safely assume whatever rise is made, 20% at least goes back in tax….
February 13, 2023
Not sure PPE Oxon. included any sensible economics if so the type of bent care salespeople who aspire to PPE rarely seem to grasp any.
Sir John Hicks, the 1972 Nobel Prize winner in Economics, wrote that PPE provided him with âno adequate qualification in any of the subjectsâ that he had studied. I suspect the problem is the types who apply rather than the course itself.
You do not need to be a genius to see that people and businesses are far better at spending and investing their own money than governments are. Much of government spending does positive harm as we know and even more money is wasted in the collection and distribution. Plus the vast harm done to the businesses and people the money was forcibly extracted from.
Talking of PPE grads have Handcock, Sunak and the chief whip (history I think for him) all apologised profusely to Bridgen yet?
February 13, 2023
How can politicians – who must know that the 25% business rate will kill jobs and make us poorer – take such stupid decisions?
February 13, 2023
kickbacks
February 13, 2023
Indeed under Chancellors Sunak, Osborne, Hammond, Hunt many taxes are even more than 100%. Landlords for example are taxed on profit they have not even made. This as interest is not fully deductible and capital gains are taxed without any indexation for inflation. IHT, ULEZ, council tax and stamp duty are all taxed regardless of whether any profits have been made at all. Labour even had 15% investment income surcharge on top of the 83% so 98% when people like the Rolling Stones sensibly left the country.
Denis Healey had a double first in Greats but clearly had zero common sense.
Some ideas are so stupid that only intellectuals believe them – George Orwell.
February 13, 2023
Because Kenneth, I believe the majority of politicians are out to destroy Great Britain, they want to make us subservient to the WEF and the rest of those trash
February 13, 2023
+100
But look at the other things they have done to us.
Making us poorer ( I mean who cares about money? Well they certainly do!)
Is a mere bagatelle compared to their other betrayals.
This govt. should resignâŠunfortunately there is no viable alternative âŠa situation carefully engineered by them!
We really are in trouble.
February 13, 2023
@Kenneth , because those that have highjacked the Government are taking their orders from elsewhere.
February 13, 2023
A good question Keneth. How indeed?
We obviously need our brightest minds on it. Anyone got Olllie Robbins or Peter Mandelsons number?
February 13, 2023
I was thinking Diane Abbott.
February 13, 2023
Down to earth and humane sometimes works.
February 13, 2023
Net Zero ideology will lead to higher taxes. When the public rebel against this imposition the State will pass oppressive laws to make debate on this issue a criminal offence with new political parties being banned from forming.
The writing is on the wall. The left across the West are now in full control and they intend to embed themselves to make it nigh impossible to remove them
NZ is collectivism in action
February 13, 2023
+100
IMO the voters have unwarily and cockily ( âIâm a GOOD person and Iâm on the side of MSM and the govt.â) allowed new political parties to be de facto banned.
Once, here, on voting day a local councillor came a-knocking.
âGet out and vote..the BNPâs comingâ, he squawked.
You can tell what a long time ago that was because the BNP were standing a candidate.
Not âdemocracyâ. Not healthy.
All rigged!
February 13, 2023
@DOM According to the Boris Johnson bible levy’s on energy are are not taxes, they may be compulsory but musnât be called a tax. Therefore the do not add to cost or inflation.
February 13, 2023
The UK choice at the next election will be Tory socialism or Labour socialism heavy. Even if a sensible party were to win they would be unable to do much that is positive. This given the civil service, the opposition, the courts, the globalist organisations, the ECHR, the BoE, the Botched partial Brexit, the remoanersâŠ
February 13, 2023
Meanwhile out there in the real world, Sir John, while you’re harking back to Margaret Thatcher and George Osborne, your colleague Grant Shapps is planning a levy to be added on to energy bills to fund the production of low-carbon hydrogen. This is yet another green tax on energy bills, which we are supposed to put up with because of your government’s fanatical dedication to net zero. Even the really serious energy crisis we’re now in has not stopped Shapps, Skidmore and their ilk from kow-towing to the UN- and WEF-imposed climate agenda. You try to slow down the net zero folly by saying that the public aren’t yet on board with e-vehicles, hydrogen pumps etc. so we shouldn’t rush into things. But you’re not going to put a brake on it when a government full of green converts like Shapps is in the driving seat. If you don’t want this new green tax, why don’t you stand up and say so, like Jacob Rees-Mogg has?
February 13, 2023
Why did a few people choose Liz Truss over the billionaire, Indian heritage Rishi Sunak? She has messed up your chances, Sir John, of being heard above the din of pessimism. Now safety (aka pessimism) is the flavour of the month.
Meanwhile, worldwide, BP makes billions of pounds in profits and, instead of being congratulated, it is castigated by the press.
February 13, 2023
Yes, better a small slice of pie, or no pie at all.
Unless of course you then want to complain about where the pie’s are made, what gender are going to make and distribute them, with what energy source, what ingredients are included, how it should be sold, to whom, and under what rules and pricing structure.
Then you may also find there is no pie for anyone, because it would be too complicated and expensive to make in the first place. !
February 13, 2023
But lower tax means more money for hard workers whilst higher tax means shirkers can receive more benefits. The pollsters have crunched the numbers and impoverished democracy has beaten affluence.
February 13, 2023
Putting aside the discussion of vaccine safety in general the uk government stopped using AZ and went for the much more costly US product which was more difficult to distrubte and to store due to refridgeration requirements. What was the real reason for discontinuing its use. The good odd US pressure on the UK to do what it wants for US benefit rather than UK benefit ?
25% corporation tax compared to 15% is just another lack of Government support for British industry and manufacturing. But Mrs T and Governments from then on thought the UK could survive on just a service industry.
Making things to sell all very down market and unnecessary.
February 13, 2023
Sensible proposals Sir John. They would however, not be in alignment with the EU and producing our own oil and gas would be out of line with the mad Net Zero policies.
Any UK success may not be helpful when secretive cross party meetings are held by MP’s to discuss closer alignment to the EU, would it?
February 13, 2023
Sir John, I despair at the continued folly of this government and I am unaware of what drives it but it is certainly not economic prudence.
February 13, 2023
Cutting and eradicating waste from every sector and departments in both civil and public services would make a massive difference to the taxes required by the treasury. Start first with what you have full control of.
February 13, 2023
‘The same folly is evident in the North Sea.’ Yep, Harbour Energy – a British company and the biggest operator in the North Sea – decided NOT to bid in the current licensing round, because of the ‘windfall tax’. It is now making redundancies at Aberdeen. The tax-take from the prospects NOT being developed will be zero. But hey, Sunak is on the case and signed an agreement with Biden so we can can import more ‘fracked’ gas from the USA, thereby enriching the US Treasury and worsening our Balance of Payments. What chumps we have in your ‘government’. When the time comes to renew my Conservative Party membership, in June, I won’t bother. At the local elections, I’ll be spoiling my ballot paper. It is now less than two years until the next GE and I see no signs of the government making the substantial policy shifts needed to win it. Are you trying the throw the fight? It looks like it.
February 13, 2023
P.S. Good article. I wish there were more MPs like you in the Commons.
February 13, 2023
Sunak and Hunt are taking a wrecking ball to the economy and it HAS to be deliberate.
Why? I think the answer lies with the cross-party meeting of Gove, Mandelson, Lammy, Lamont, Howard and various others to discuss the UK’s relationship with the EU and how to make it closer. In other words, how to weaken even further the Brino+ Johnson delivered.
February 13, 2023
Donna, my husband bought me a subscription to The Spectator recently. A remainer called Leith has indicated the direction of play today.
The traitorous Scot, Gove, who reneged on English Votes only for English-devolved issues, is apparently trying to appease Mandelson and all the other righteous EU zealots.
“This wasnât just a bunch of Remainers sitting about, like at the north London dinner party of clichĂ©, taking competitive pleasure in pointing out how wrong their political opponents turned out to be.” he wines, ” or a bunch of Brexiteers stewing in resentment at how âsneering elitesâ sabotaged their project”.
Remainers must acknowledge that Brexit is a reality, and any hope of reversing it is “a generation off”.
“Leavers must acknowledge that itâs been a bit of a boggins so far.” I had to look up boggins – google doesn’t recognise the word, wordhippo doesn’t recognise the word, nor the online-dictionary.com. But I guess this writer who has always thought Brexit was a terrible idea knows what he means.
We’ve been tied in knots with the withdrawal agreement and divorce payment equivalent to membership fees for years, but we are just becoming free of it now; we can sign our trade agreements, and the Tories need to get on with that; we have stopped paying their ÂŁ2.5bn fines pulled out of thin air, that air gets thinner the more money the UK ever made, prostitution and drugs taxes that will do nicely ÂŁ4.5bn, please. Fines for some infraction or another that other Countries in the EU get away with, Ireland let to get away with uncompetitive tax rates, and our leaders are just on our knees to people like Varadkar.
Why wasn’t Redwood or Farage invited or Tice if they truly wanted a full round table? No, they wanted this round squaring off to suit the remain return in a generation, let’s not step out of line because they want straight jacketing back in.
February 13, 2023
The economic mess is being deliberately weaponised to blame it all on Brexit! There are still some powerful forces who for some strange reason want to rejoin the EU.
What I donât get, is why anyone (GB) would want to burn their own house down just to be friends with their rather untrustworthy and selfish neighbours.(EU)
February 13, 2023
and that group of neighbours keep blowing more paper towards the fire.
February 13, 2023
Possibly by destroying the British economy. They can then say Brexit has been a disaster. So we must return to EU control! Why else would these 2 imposters want to keep making the British people poorer?
February 13, 2023
Nobody in the Treasury has sold oranges from a barrow on a wet saturday afternoon. Do not expect common sense to prevail from that source.
In answer to your last question, guidance from the Treasury and OBR is designed to get us back into the EU. A failed economy is ripe to go back, a thriving one never. You must face up to reality, the scribes are out to get you. Put them back in their boxes or the people will do it for you via the next election. We will not tolerate this fifth column much longer.
February 13, 2023
Just to confirm my worst fears, members of your government, members of the opposition, industrialists, and scribes have met In the UK with members of the EU on the basis that Brexit has been disappointing so what can be done to improve matters. This has been done rather than correcting the residue of the May/Johnson badly negotiated Brexit agreement. I mean, NIP, Immigration, Fisheries, and of course all the deliberate impediments to trade orchestrated by the EU. This has every indication of being a prelude to our gradual return to EU jurisdiction. At the very least the PM should be bombarded at PMQs tomorrow until he gives some clear answers. Who for instance was present , we know about Lammy, but who were the rest.
February 13, 2023
Perhaps Sir John will tell us which Tory MPs were present?
February 13, 2023
If the meeting was held on the taxpayers dime âŠ.I want to see the agenda and minutes
February 13, 2023
The Meeting …… If not seen already, Facts4eu have a contribution on this today on their site with further comment expected tomorrow ( Part 2 ) A number of attendees are identified.
February 13, 2023
Indeed corporation tax was cut from 28% in 2010 to 19% in 2017. Receipts from Corp tax rose over this period from ÂŁ32bn to ÂŁ62bn. One of the clearest illustrations there is of the laffer curve effect.
Unfortunately I believe the reason the govt prefers expensive LNG to cheaper, more environmentally friendly domestically produced gas, is imported gas doesnât count towards the net zero calculation. Same reason we prefer to import steel and other manufactured goods to producing them here. This irrational policy is ruinous on many levels.
February 13, 2023
Wasters leading Government lead to waste.
February 13, 2023
The reason the models do not predict a rise in taxes when rates are lowered is that they assume that behaviour will not be modified. Given that âsinâ taxes are imposed to modify behaviour, it is a mystery to me why the same logic is not applied to income taxes.
February 13, 2023
From the Telegraph
âSir Iain Duncan Smith, a former Tory leader, warned Mr Hunt not to âcrush the economy in pursuit of inflation, as that would be a disasterâ.
âBut Treasury insiders are standing firm and insist that reducing levies now âwill only fuel the inflation fireâ and hinder the UKâs recovery.â
A Government frightened to manage that has become the puppet of those trying to destroy the UK.
February 13, 2023
But you need to create a slowdown in order to reduce inflation which seems to be the game.
February 13, 2023
It was stated on the BBC(of all people) the other day that the UK has lost more of its industry than any other nation. Then went on to state that over the decades the Political Class have âpromisedâ that other forms of employment will take up the slack, and as they concluded it has never happened.
As a high tax regime the only preoccupation and energy used by big business is in tax avoidance. Leaving a situation that those that have to pay, âpay the penaltyâ, are those were avoidance is not an option. Those paying this corrupt penalty are those that are trapped at what is called the bottom end, they have to rationalise, cut back and economies. i.e. they run a tight balanced budget. That in turn removes money from the economy at large, so inducing low turnover that then has to result in higher prices to meet the overhead and tax demands.
It then sticks in the back of the âtaxpayersâ throat when Government refuses to Manage, it increases departments, it increases staffing levels, increases wages, then refuses to run a balanced budget while at the same time demanding more and more tax is to be paid.
Lets not forget we are suffering a 70 Year high in tax, with less services available than there has ever been, all because of the continuation (and after all it is still his collective Cabinet) of the Boris Johnson creed of spend, spend, spend.
February 13, 2023
@Ian B – Then have the gall to call this crowd a Conservative Government
February 13, 2023
Does JR know anymore or have anything to say about what went on at Ditchley Park the other day. I suspect Sunak has some agreement with the remoaners.
February 13, 2023
From the Daily Telegraph – “A million more people facing paying tax on savings under Huntâs stealth raid”
Grab it from anywhere so I don’t have to Manage, create a balanced budget. I want along with my friend Sunak to just keep giving other peoples money away. I am a wreaking ball out for revenge
February 13, 2023
The more this goes on the more it becomes clear that HMG is pursuing destructive policies deliberately.
February 13, 2023
Good sense and criticism and as much as I agree I cannot understand how you can declare loyalty and support to a leader and and his ministers favouring and promoting the actions which you fundamentally oppose at the same time. How are voters expected to understand? I suppose it amounts to the view that the Tory party comes first no matter what it does, no matter how much it destroys our economy.
Will they change enough to satisfy you? If they make some small changes will you say it’s enough and then claim you conscience is clear?
And what will you do if they don’t change?
February 13, 2023
And on a similar matter of belief Sir Ian Duncan Smith, another MP who I have a great deal of time for, is critising your and his government of failing in response to China’s actions. He has said it is pathetic.
How can anyone remain in a party when it in government fails consistently in such ways which damage the country so severely.
February 13, 2023
From the MsM
“Lord Frost, who was chief negotiator for the withdrawal agreement that took effect three years ago, said: âThis secret conference is a further piece of evidence that many in our political and business establishment want to unravel the deals we did to exit the EU in 2020 and to stay shadowing the EU instead.”
Hence the punishment we get from the Government, all part of the plan
February 13, 2023
They know all of this, Sir John. But the fifth column communists in Parliament, the civil service, the quangos, NGOs, âcharitiesâ, judiciary, educational establishment and all our institutions desire to impoverish the country as a way to gain complete control.
This is the reason for the CAGW/Net Zero scam. Note that the phrase âsubject to energy securityâ in the original Net Zero Strategy when describing how we will obtain our energy no longer exists in the new âMission Zeroâ version and has been replaced with âbehaviour changeâ.
The name of the new department âEnergy Security and Net Zeroâ is an oxymoron and designed to deceive. Like the Ministry of Truth in George Orwellâs book 1984.
February 13, 2023
I’m surprised John hasn’t felt the need to condemn Gove and Lammy with their attempted stitch-up of Brexit?
Labour and Tory snakes working with diplomats to undermine our democracy and challenge the supremacy of the people’s express wishes as per Cameron’s referendum
Time for Tory MPs to expose that snake Gove and Mastermind Lammy
February 13, 2023
When you remind us about how M Thatcher cut the income tax rate from 80 per cent to 60 per cent and then to 40 per cent etc well therin lies the root of our problem – there is no consistency in any of this – our taxation rates are all over the place – being shoved up and down over the years at the whim of any new chancellor.
The same goes for business tax rates – we need better consistency in all of this – we need agreement between the parties that irrespective of who is in power they will operate between set limits – we need to build reputation.
“There should be no surprises for business” especially where It comes to FDI – it only scares them off
February 13, 2023
Who in government call for the secret review of brexit and how much of taxpayers money spent on this secret event âŠ.If it was, as described, a cross party review why the need for secrecy âŠ.If it was organised by the BoE maybe its another coup âŠDid the PM & Chancellor approve the secret meeting
Whoâs actually in charge of our fiscal policy, our growth policy, our sovereign policy
February 13, 2023
But havenât we ( or rather Sunak) signed that global compact on taxing corporations that screwed Ireland?
We just lost a big drug company setting up here I think.
Global compacts are death to a nation.
As I expect they are meant to be.
February 13, 2023
Motivation motivation – Sunak and Hunt don’t seem to understand this . There has to be a back bench revolt in the Conservative Party for change to happen .
February 13, 2023
Sir John,
Agreed 100%
February 13, 2023
âUK to launch security review over China spy balloonsâ more reviews more huff and puff.
China doesnât need balloons to know what is happening, the UK Government working on their own initiative(?) have had the Chinese State install security cameras on our high streets. Not forgetting here the former minister Matt Hancock was caught out by a Chinese State supplied spy camera in his offices.
Then we have the UK Government permitting the Chinese State access via UK telecoms to every business and home in the UK through land lines and WIFI.
They (the UK Government) have recognised the situation have agreed with others its a risk, but persist in doing the opposite to common sense.
February 13, 2023
The OBR and the Treasury – the new enemies within.
February 13, 2023
We have enough enemies within from the undemocratic remainers alone!
February 13, 2023
“In April 2023 UK firms are expected to give 5% rises.” Jasper Jolly in the Guardian.
Get real Jasper, the NLW is going up 10%, people will not keep seeing their differentials to the minimum wage in the UK drop. It is a perfect storm and its being done on purpose by this conservative government to harm the UK.
February 13, 2023
I wonder if the pay is rising more in the private sector because more people are nearer the NLW levels than their public sector counterparts. How many public sector workers earn full-time equivalent (37.5 hours) actual gross pay of ÂŁ18 to ÂŁ24k per annum compared to the private sector? The NLW went up 6.6% from age 24 in April 2022, and 9.8% in the 21 to 24 age group. But our news let these public sector unions keep misrepresenting what is happening with their “public sector workers have suffered much larger drops in real pay” statements never unchallenged.
February 13, 2023
Sir John,
A new business rate of 25% coupled with high and erratic windfall taxes, discouraging investment and persuading businesses to invest elsewhere. We seem to have gone back to Labour’s policies of the 1970s.
February 13, 2023
As taxfoundation.org â2022 Corporate tax rates in Europeâ shows, the UK at 19% was having one of the lowest rates compared to those in the EU27 with only HUNgary at 9%, IReLand 12.5%, LIThuania at 15% lower than the UKâs and with CZechRep, POLand and SLoveNia also at 19%. During our last few years at 19% did we attract major FDI? Not really. Will we attract more after April when the rate goes to 25%, certainly not.
But the questions that people like Sir John forget (or Iâll be very nasty, are unable) to ask (because they are still stuck in the world around the 1980s) are:
– why was the UK at 19% not attracting more FDI, especially now the country has escaped âthe clutches of the EUâ?
– why have we not seen major internal/home investment these last few years? (Most of the IPOs announced these last two years did not actually happened and were put off to âbetter timesâ see e.g. investmentweek.co.uk, 07/07/2022 âNumber of IPOs on the London Stock Exchange plungesâ).
– does Sir John really thinks that a bloom of new industry would follow a drop in tax take when what he appears to support is Pop&Momâs convenience stores, cafes, and micro-services very unlikely to develop to have any impact on our dreadful balance of trade (-ÂŁ108bn in 2022)?
What Sir John appears to call for (even if heâs not even conscious of it) is not âGlobal Britainâ but a limited navel-gazing Ingerland. And even so, will there be any enough demand from the population when after several months of inflation above 10% the potential increase in salaries will hardly cover the fall in standard of living?
And donât tell me that the state pension that might see a more proper CPI increase will incite pensioners to invest in UK plc.
February 14, 2023
Investment week headline: 7 Jul 2022 â “The number of companies floating on the London Stock Exchange fell sharply in the first half of this year.”
This is money: 10 Jan 2023 â London stock market listings halve after a record year as cash raised by new companies falls 90% amid economic uncertainty.
So the UK had a record year in 2021 after covid and after Brexit when Boris was in charge? On 24 February 2022, Russia invaded Ukraine in a major escalation of the Russo-Ukrainian War, which began in 2014. Do you think this had anything to do with it?
The UK outperformed all other G7 countries for a second consecutive year in 2022. Hunt and Sunak have been ruining that since October 2022 – not Truss, those two.
February 13, 2023
Astra Zenica move to Ireland is due to the sales levy it has to make to the government which has increased since covid and the vaccine
Totally unfair considering they supplied all their vaccines for no profit
I am not surprised they are pretty upset
I suppose they will now sell their drugs elsewhere
February 13, 2023
They only sold ‘at cost’ to buyers non-UK and non-EU.
February 13, 2023
You are right, 25% of nothing is nothing! But why can’t our PM & Chancellor see that? Likewise, the Chancellor’s stubborn refusal to refund VAT to international tourists! The UK succeeds despite the Government when it should succeed because of the Government. But why are not all or most Conservative MPs hammering on the PM’s door & telling him bluntly to change course? Cut the cost of Government & you can then cut taxes properly for businesses & individuals!
It is not rocket science but seems beyond the understanding of the PM, Chancellor & our dozy Conservative MPs! Are you telling them, Sir John, as well as us?
reply Yes
February 13, 2023
It’s obvious that the harm Sunak and Hunt and the BoE are inflicting on the economy – and encouraging the civil service to inflict – cannot be accidental, as the results of their policies are so predictable. Britain is being deliberately turned into a basket case, to create fearmongering among the voters, and a passive acceptance of the cross-party attempts to rejoin the EU.
February 13, 2023
I don’t think so mancunius, the idea of rejoining is out of the question, we’d be wasting our time, they would never put up with us again ever – we’re just too much trouble.
February 14, 2023
Singalong is which top three ways were we too much trouble? What did we overturn?
Cameron didn’t overturn Juncker even though he was supposed to have a veto at the top table.
Cameron couldn’t get a minor change to sending British-level (cost of living) tax credits and other universal credit benefits to children abroad. If it wasn’t a massive payment, why not make the adjustment, the Germans were calling for it later.
The UK couldn’t even make the case that we didn’t charge tax on prostitution and drugs so why should the none users of those ‘illegal’ activities pay EU vat on it?
February 13, 2023
Driving investment out of the North Sea by setting rates of tax which remove the potential profitability is plain stupid. However, the situation with Eire is slightly different to ours. Corporations can operate throughout the EU
and put their income through a HO in Eire without much involvement of the Irish who will not necessarily be receiving major investment or the dividends either.
February 13, 2023
When you look at all these actions, our host sees the same flaws as (most of) the rest of us.
What I never see is why he believes they are doing such silly things. Do you really believe that they are dense and cannot see that they’re doing the wrong things? Or are there other nefarious forces at play here?
February 13, 2023
Oh and don’t forget the other BIG examples of lowering tax rates –> higher tax take:
The Weimar Repulic. The rebuilding of Germany post-WW2. They took a hatchet to their tax rates and tax system and their economy exploded to the point where they became the most powerful economy in Europe.
JFK’s USA administration. They were elected on a platform to cut rates, but they were doing so from a conviction that it was immoral for the govt to extract such high levels of tax from its citizens. As such, they expected the tax take to reduce but were surprised when instead, it went up.
February 13, 2023
rebuilding was largely due to the Marshall Plan, America manufacturing grew fast due to UK and Germany taking imports.
February 13, 2023
Home Office â12th February 2023
Illegal Immigrants 86
Boats 2
How many not recorded everyday âŠeveryday
February 13, 2023
Do we really have to put up with this kind of twaddle?
https://www.cityam.com/brexit-delivered-1000-blow-to-every-uk-household-bank-of-england-rate-setter-haskel-claims/
“Brexit delivered ÂŁ1,000 blow to every UK household, Bank of England rate setter Haskel claims”
“Speaking to The Overshoot, Jonathan Haskel, an external member of the monetary policy committee (MPC), said that the âproductivity penaltyâ caused by a huge drop in capital spending since the 2016 referendum has amounted to 1.3 per cent of lost GDP growth.
If investment had continued on its pre Brexit trend, the economy would have been around ÂŁ29bn larger, Haskel said.”
Ah yes, if investment had continued on the trend that was running before the 2016 referendum, despite the small matters of an intervening pandemic followed by a war in Ukraine, then the UK economy would now be about 1.3 per cent larger … and this bloke has a hand in setting Bank of England interest rates?
Any answer to this unmitigated rubbish from the government? Of course not, there never is.
February 13, 2023
From MsM – “Brexit has cost the UK around ÂŁ29bn, or ÂŁ1,000 per household, a Bank of England official has warned.”
Is that so they don’t have to say how much the Bank of England has cost us. The Remainers in the establishment and this Government are in force fighting like mad to contrive a return to the dreaded dictatorship.
February 13, 2023
I can only conclude that Hunt has set out to undermine the freedoms of Brexit.
February 13, 2023
Well said John! Agreed, high taxes discourages businesses
February 13, 2023
Yes Sir John it’s crazy!
Understandable.. All part of ‘Managed Decline’ and WEF agendas of which both chancellor and PM are part of – as is King Charles 111
We need Sir John Redwood as chancellor – urgently!
kind regards
Peter
February 13, 2023
Your hypothesis that lower taxes leads to a greater take is born out in Ireland. I agree as do many others including the ousted Liz Truss. However there are greater forces at play with a very different objective in mind. Most of the senior civil service had real legislative power when we were in the EU. Power that bypassed Parliament and democracy itself. They want back in. The vast majority of the Labour Party want back in to their dream of international socialism. They have a song about it. I suspect a majority of your own party would vote back in given the opportunity. The Lib/Dems and SNP make no bones about their desire to return. Big business wants back in because they see it in many cases, but not all, as a seat at the table of market control. The people see Brexit as a promise unfulfilled so given a second choice I would not bet on the result. However I suspect that were the electorate made chapter and verse aware of exactly what is going on, and what is at stake, they would abandon most in Parliament for any party with a philosophy of saying it as it is. Remember what happened in our last EU election, the Brexit Party told it as it was and sanitised the UK contribution to the EU parliament. Circumstances in UK politics are such that it could happen again, but this time in our own GE.
February 13, 2023
Brexit got the nod simply because UK witnessed over many years a relentless ‘do as you are told’ from the largely unelected bureaucrats of the EU. A very deep-seated reaction from Brits followed with many, many generations of ancestors from other countries in the DNA – ‘we don’t take orders well’ coming to the fore.
February 13, 2023
+1
February 13, 2023
The problem here, SJ, is that your logic makes sense. Making sense is now, apparently, anathema to the Treasury and seemingly to the Chancellor, who has no formal training in such matters.
It makes no sense to me that unqualified MPs are hoisted into senior positions without an appropriate qualification to match. However for example, the Minister of Defence is doing a fine job but he was in the Army at one time, of course. Can we say the same for very many other departments? Sadly, it ends up with the Civil Service Mandarin actually running the government department because its appointed Minister lacks the expertise to do so. The state of current affairs dictates that It certainly is time for change but will we get it? Ever?
February 13, 2023
I totally agree. The same loss of income occurred when stamp duty was increased on residential properties. ÂŁmillions has been lost by that decision.
February 13, 2023
Sir Redwood,
Lower tax brings in more income and prosperity (to a limit).
Lower taxes are also linked to low cost energy, could you write here about the newly approved SMR design in the US:
see VOYGR-12 from the company NuScale, 924 MWt continuous reliable PWR design requiring fuel change every 24 months, safe LOCA without operator intervention.
February 13, 2023
In reply to a post Mr. Redwood wrote:
Yes but the question must be – âdo companies like Aldi and Lidl remit large payments to their parent companies to avoid paying Corporation Tax hereâ?
February 13, 2023
Interesting to see several articles on the website of The Spectator about the Observer’s reporting of secret talks at Ditchley Park this weekend on Brexit. It seems that the organisers sought to hold a secret multi-party discussion about how the country might take steps to improve relations with European Union Member States following Brexit. Apparently Mr Gove attended, along with many others including Mr Mandelson. I wonder what our host’s opinion might be about this gathering and the sentiment that inspired it.
February 13, 2023
Also interesting that the Daily Telegraph is reporting that Mr Sunak is being asked to approve an agreement by which the mechanisms within the Northern Ireland Protocol are to function differently, with the ECJ still possessing the deciding voice in certain scenarios. Iâm sure your regular readers will be keen to express their predictable views on that.
February 14, 2023
Yes Will and it’s about time we got real sat up and smelt the coffee
The NI Protocol is going to be sorted because UK needs better relations with the EU and the US
at this time and the whole damn thing is holding us up – Boris and Frost negotiated agreed all and signed off and now Sunek is only tidying up the loose ends – so what else?