Let’s not put up taxes. Let’s trade more. Seem obvious. Well not in late 2025 in Britain. This possibility must be forcefully put on the agenda for debate in parliament. Raise revenue, rather than raising new taxes, has got to be the better way to go. The bigger the pot the more chance that a government has got to balance the books. Taxes have their place but not to be the default opinion, in all cases.
The Labour Party has been talking the talk on growth in the economy but frequently marching in the opposite direction. It’s as if they embrace the comfort blanket of domestic tax increases too readily without thinking of the long-term impact. Habits are hard to change.
Before, what a majority agree was a mistake, Brexit, trade with our next-door neighbours was in a much healthier position than it is now. We’ve (UK) created barriers and obstacles that have diminished our trading position to no advantage whatsoever. Coming up for a decade of backward thinking.
In parliament, the Liberal Democrats are tabling a bill that calls for creating new Customs Union (CU) with the European Union (EU).
What is a CU? Simply put, it’s a trade agreement between countries to abolish tariffs on the goods they trade with each other. So, instead of barriers and obstacles to trade, the whole process becomes easier and cheaper.
Yes, such an agreement with the EU would have implications for relations with non-EU countries. What I’d say in that respect is that such negotiations with non-EU countries on tariffs haven’t been going so well in the last year. The UK has been buffeted by the policy of other nations, where their policy often spins on a dime. On / off fragile agreements don’t add enduring value.
Such a new CU with our next-door neighbours would boost the UK’s GDP by a significant amount. A boost of £25bn a year for the public finances is predicted. Thus, the growing demands that drive for domestic tax increases would be abated or at least be affordable.
Do you remember? So, many advocates of Brexit said we’d never leave the CU. It’s easily forgotten but some of the most ardent Brexit supports were saying this to the electorate. In essence being untruthful.
Back in January 2017, the Conservative Prime Minister (PM) of the time confirmed that the UK would not remain in the EU CU. What a massive mistake PM May made. The repercussions have been devastating for businesses and the public up and down the UK. It was an act of disfigurement that damaged our economy for nothing more than political dogma.
Sadly, we are where we are. I wouldn’t start from here. Wouldn’t it be great if negotiations started to take the UK into a new CU with our nearest, biggest trading neighbours and partners.
Sadly, the way the parliamentary vote will go is rather predicable. The Labour Party, in its current form, is not the internationalist Labour Party of its history and traditions. Currently, government support is not forthcoming. They prefer to talk the talk without walking the walk.
Post: Fix Britain’s Trade – Liberal Democrats
John Vincent 