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Post-Brexit tax changes to boost GDP?

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A new report from global professional services firm Alvarez & Marsal Taxand (A&M) calls on the government to introduce four key tax changes which the firm believes could stimulate a 7% boost to UK GDP post-Brexit.

These changes would include:

  • a combination of increased R&D incentives, with each 10% rise in R&D spending driving an average 1.3% increase in GDP;
  • creation of ten free ports, each one creating an average of 13,500 jobs and £800m of GDP per year over a 20 to 25-year period; and
  • a regional corporate tax system with lower average rates (a 10% reduction in the rate of corporate leading to a 1.2% increase in GDP).

In addition, A&M believes decreasing VAT on electricity by 5% and increasing VAT on domestic energy from fossil fuels by 5% would lower domestic energy consumption in the UK by 1.2% and lower domestic fossil fuel use by 1.5%.

Issue: 1474
Categories: News