An Opportunity in waiting.
"UK will be the global leader in free trade"
Business Growth Consultants.
Our team of Consultants work with you to define the Growth Strategy and most importantly, deliver the Results.
4 Brexit opportunities.
We need more Jobs, Prosperity and inclusive Growth if we have to succeed in a post Brexit environment. It’s a challenge and we must deal with it as an opportunity in waiting.
Let us think like an entrepreneur and get ready to adjust and position ourselves in a changing global economy as Theresa May notes – "UK will be the global leader in free trade"
So, getting straight to the point. If I think like a Consultant, an Entrepreneur, these are the 4 things that I expect from our policy makers to deliver:
- Lower Corporation Tax - A 12% corporation tax, from 2020 to 2030, is enough to attract new companies to come to UK and destroy the ‘leave UK’ business case.
IFS figures show the largest 1% of companies (by taxable profit) accounted for around 80% of corporate tax receipts. We need to create incentives for these companies to stay and attract more such companies to UK.
Failure to do so would mean that 99% of the remaining companies, mostly SMB’s, will have to bear the hefty shortfall choking growth on a mass scale.
After all, in a world of near zero yields, who would resist an 8% uplift in balance sheet?
This should compensate for any Brexit related business risks (Lower tax receipts can be countered by a higher tax volume). Make this pledge today.
This will also support the 15 million small and medium UK businesses who provide 60% of total private employment. (Figures from FSB)
- Announce Special Economic Zones - If China, Japan, India (and the list goes on..) can have these Special Economic Zones (SEZ’s), why not Great Britain?
These special economic zones could be specialised hubs for Biotechnology, Pharma & Medical research, Renewable Energy, Food Processing, IT Innovation, Financial Services, Engineering and many more functions based on our Geography, populace and emerging opportunities.
Building a ‘Japanese City’ to pull in large Japanese Investments and a ‘Chinese Financial Hub’ to enable renminbi trade are some levers we could use in coming years.
An Infrastructure Investment plan will support bilateral trade deals as Governments and Large Conglomerates would be convinced about our intentions to build mega Ports, Highways, Railways, Airports around a network of smart cities spanning England, Scotland and Wales.
The Infrastructure for these SEZ's will regenerate many nearby towns and bestow our nation with mini powerhouses outside of London.
Non-stop Inward Infrastructure Investments (based on BOOT, BOLT or BOT) for the next 5+ years will change the shape of United Kingdom. How many of you still marvel at our M25-giant car park?
SEZ's will also help us shape our bilateral trade deals with a country and capability specific focus. Announce an Infrastructure partnering plan and see the deals pour in.
- Balance the Books - Just as every cloud has a silver lining, every crisis is an opportunity to improve, become more efficient and improvise.
Brexit is one such opportunity that should force us into financial discipline. As a nation, we should have clear income to expenditure ratios for every expense item. This will help the policy makers to focus on starting growth engines rather than cutting on support structures.
Fact is, a welfare state needs a giant earnings engine to keep it going otherwise we all go down under its weight. You can either grow earnings or cut expenses. We should choose to grow earnings.
We should also scrutinize our expenses. Additional borrowing beyond current levels should be subject to public referendum.
- Human Resources capital - Immigration debates should be about protecting our demographic evolution as a nation. Who wants to age as a nation if we can infuse some youthfulness through managed borders?
UK Universities already attract 400,000+ students from all over the world per year. These students fund our Universities, get the knowledge and go back to contribute to their home economies.
Should we not devise a mechanism to channel this youth power in contributing to our economy and keep our Universities and Institutions at the forefront of global innovation?
Of these 4 points above, if we get the first 3 points right, Immigration debate could become a Human Resources policy and actually contribute to our growth.
Finally, on a brighter note, we have been doing better than most developed nations and can continue to do so for foreseeable future. Just keep on improving.