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What is Corporate Welfare
Economic and Government Policies United Kingdom June 25, 2016By: Paul Young, CPA, CGA
1
This presentation is one perspective when it comes to government and economic policies for the United Kingdom
Paul Young - Presenter
BioCPA/CGA25 years of experience in Academia, Industry and Financial solutionsYoutube Channel - https://www.youtube.com/channel/UCAArky1bAXPSuV2NLtUnyLg
AgendaGDP GrowthTradeCanada and UK TradeGDP / SectorDebt to GDPDeficits/Surplus Business Taxation Payroll Taxes Foreign Direct InvestmentBanking/Financial Services SectorGovernment
GDP / Growth
Source: Scotiabank Economics
http://www.gbm.scotiabank.com/English/bns_econ/forecast.pdf
5
UK Trade
Source: http://www.worldstopexports.com/united-kingdoms-top-exports/
Top Export Destinations
1. http://www.worldstopexports.com/united-kingdoms-top-exports/ 6
Canada and UK TradeCommercial and economic relations between Canada and the United Kingdom are historically strong and mutually advantageous. The UK is by far Canadas most important commercial partner in Europe and, from a global perspective, ranks third after the United States and China. In 2010 total bilateral trade reached over CDN$27.1 billion, and over the last five years the UK has been Canadas second- largest goods export market.
Source: http://www.canadainternational.gc.ca/united_kingdom-royaume_uni/bilateral_relations_bilaterales/commercial-commerciales.aspx?lang=eng
http://www.canadainternational.gc.ca/united_kingdom-royaume_uni/bilateral_relations_bilaterales/commercial-commerciales.aspx?lang=eng
7
GDP by Sector United Kingdom
Source: http://www.indexmundi.com/ and http://www.statista.com/ or http://www.tradingeconomics.com/united-kingdom/gdp
http://www.tradingeconomics.com/united-kingdom/gdp
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Debt to GDP United Kingdom
http://www.tradingeconomics.com
Reducing the deficit and paying down the debt it has created are among the Governments main economic challenges. Ministers now have tough decisions to make over how quickly they should tackle the UKs debt.
Source :http://uk.businessinsider.comAnd http://www2.deloitte.com
http://www.tradingeconomics.com/united-kingdom/government-debt-to-gdphttps://www.moodys.com/research/Moodys-changes-outlook-on-UK-sovereign-rating-to-negative-from--PR_350566http://uk.businessinsider.com/wef-countries-highest-level-of-government-debt-vs-gdp-2016-4http://www2.deloitte.com/uk/en/pages/public-sector/articles/the-governments-debt-reduction-dilemma.html9
Surplus (Deficits) / GDP
Over the past six decades, budget deficits have been the norm in the UK, rather than a recession induced exception. In those 60 years, the budget has been in surplus on only eight occasions, the last time in 2001/2, just before Labour once more took the lid off public spending.
Source: http://www.telegraph.co.uk
http://www.tradingeconomics.com/united-kingdom/government-budgethttp://www.telegraph.co.uk/finance/11930065/Labours-approach-to-the-economy-has-descended-into-an-on-the-hoof-shambles.html10
Taxation Policies United KingdomAt 20 per cent, the UK has the joint-lowest corporate tax rate in the G20 with the government planning to lower it to a further 18 per cent in 2020.VAT
Source - http://www.independent.co.uk, https://www.gov.uk/tax-on-shopping/vat-duties/Deloitte
http://www.independent.co.uk/news/business/news/world-bank-group-uk-ranks-as-world-s-six-most-business-friendly-country-a6712121.htmlhttps://www.gov.uk/tax-on-shopping/vat-duties http://www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-tax-unitedkingdomhighlights-2016.pdf11
Social Security/Payroll taxes United Kingdom
1. http://www.tradingeconomics.com/united-kingdom/social-security-rate-for-employees12
Foreign Direct Investment United KingdomThe UKs success was broad-based. Despite a second year of decline in business services projects across Europe, the UK grew its software and financial services sector projects, captured 35% of all European headquarter (HQ) moves and led Europe on R&D projects. The UK achieved a leading market share of 29% of US projects in Europe and was the main destination for investment in Europe from France, Japan, Australia, Canada, India and Ireland.The UK secured 164 manufacturing projects in 2014, beating the 131 projects secured by Germany. This was based on strong growth in the automotive, food, and machinery and equipment sectors, We have become used to being told that the UK cannot compete in manufacturing, but the results suggest that there is untapped potential and more attention should be given to the makers.The UK had the highest number of FDI projects among European nations in 2014. The percentage of total shares stands at 20% with 887 projects in 2014. The ability to convert FDI into jobs is illustrated by the fact that the highest number of corporate headquarters are located in the UK compared to other European nations. HSBC (HSBC), Royal Dutch Shell (RDS.B), and Unilever (UN) have headquarters in London.
Source - http://www.ey.com and http://marketrealist.com
http://www.ey.com/UK/en/Issues/Business-environment/2015-UK-attractiveness-surveyhttp://marketrealist.com/2016/04/uk-top-job-creator-fdi-european-union/13
Banking/Financial Sector United Kingdom
The report ranked Britain first amongst the worlds seven leading FinTech hubs, from Silicon Valley to Hong Kong, having compared these FinTech markets against four key criteria: the availability of talented staff, access to investment, the nature of government and regulatory policy, and the demand for FinTech services.
The report found that the UK has a particularly good policy environment for FinTech, with the most supportive regulatory regime, and praised the Financial Conduct Authority (FCA) as one of the most progressive regulatory bodies in the world when it comes to FinTech.
Source: https://www.gov.uk/government/news/fintech-week-2016-report-finds-britain-to-be-the-worlds-leading-fintech-centre
1. https://www.gov.uk/government/news/fintech-week-2016-report-finds-britain-to-be-the-worlds-leading-fintech-centre14
Government/United KingdomDavid Cameron has resigned, bringing an abrupt end to his six-year premiership, after the British public took the momentous decision to reject his entreaties and turn their back on theEuropean Union.
Source: http://www.theguardian.com/politics/2016/jun/24/david-cameron-resigns-after-uk-votes-to-leave-european-union
1. http://www.theguardian.com/politics/2016/jun/24/david-cameron-resigns-after-uk-votes-to-leave-european-union15
Contact/other sourcesOther sources:Brexit - http://www.slideshare.net/paulyoungcga/brexit-exit-from-eu-united-kingdom-june-18-2016
Contact: [email protected]