It seems I may be proven wrong about Brexit after all... Although I was correct about the fall in currency value and the short/medium-term economic uncertainty, the British economy seems to be picking up pace again. The manufacturing figures out today - which show a nice growth rate - confounded many of the so-called 'experts' at the IMF and Bank of England (BoE). These people should have learned from '08, QE doesn't work and is just a big, fat waste of money. Thankfully, I am hearing murmurs that the BoE might ease up on monetary stimulus if there is a continuation of positive economic reporting over the next several months.
In terms of the decision by the EU to retroactively tax Apple to the tone of £11bn, it is a incredibly stupid decision. They are making up the tax rules as they go along. This decision sends out a signal, if you're a big business - or any business for that matter - don't set up your HQ in an EU country because you could be hit with a nasty bill even though no such tax law existed when you were operating. Britain could take advantage of this incredibly short-sighted and stupid decision.
So I have begin to come up with some ideas that I think will make Britain one of the most dynamic and attractive economic locations in the world post-Brexit:
- Lower corporation tax - I won't specify a level but we should make it as low as is humanly possible. This will attract more businesses to the country, likely increase average wages and create more jobs.
- Negotiate as many free trade deals as possible - free trade and open markets are hugely beneficial to the economy. Britain can be one of the most open markets in the world, and negotiating mutually-beneficial trade deals without the need to do so within an EU block could grow the UK economy exponentially.
- Become a 'Tiger economy' - Lower-taxes (remove stamp duty and inheritance tax completely) and move towards a system that taxes consumption, not income. Lower regulation to remove red-tape and barriers that prevent business growth.
- Control immigration but allow for easy-visa access for highly-skilled individuals. This will be easier to do outside the EU and will open up more low-skilled job opportunities for those currently on welfare.
Of course there could be many more ideas to add, but the overall economic movement must be classically liberal in form.
(I even see scope for introducing a negative income tax in future, here is an interesting report by The Adam Smith Institute on the attractiveness and feasibility of such a tax system:
http://static1.squarespace.com/stat...9df/1459261353661/NIT_WEB.pdf?format=original)
