NO SOFT BREXIT: UK 'will scoop extra £20billion a year' when it quits EU single market

NO SOFT BREXIT: UK 'will scoop extra £20billion a year' when it quits EU single market

Theresa May in a red jacketGETTY

The analysis has sunk claims by Remoaners that the UK should push for a soft Brexit

The analysis by the Global Britain thinktank has sunk claims made by Remoaners that Britain needs to stay in the single market in what they have dubbed a “soft Brexit”.

The boost to the UK’s finances would be on top of the net £10 billion a year contribution the UK will get back by leaving the EU as well as the new revenues generated by being free to negotiate new trade deals.

It also reveals that leaving the single market will bring a renaissance in high paid jobs in Britain and force companies to start paying to train people in Britain.

Ukip’s economic spokesman Mark Reckless hailed the report warning that it showed Remain supporters pushing for staying in the Single Market are still on the side of big corporations who are ripping off Britain.

He said: “This Global Britain report shows that it is only by leaving the EU and its single market that we can successfully clamp down on tax avoidance.

“So long as we are in the EU’s Single Market companies just avoid our tax by sending the money to a tax haven via a Dutch company, since Holland doesn’t apply a withholding tax.”

Mark Reckless making a speechGETTY

Mark Reckless accused Remain supporters of being on the side of big corporations

Global Britain director Brian Monteith added that the findings show leaving the Single Market will help end the UK deficit of around £60 billion quickly instead sometime after 2020 as planned by Chancellor Philip Hammond.

So long as we are in the EU’s Single Market companies just avoid our tax

Mark Reckless of Ukip

He said: “If we leave the Single Market we can recover those lost taxes, eventually replacing the £60 billion and so reduce the country’s deficit, returning us to surplus quicker than expected.”

According to the study of figures in last month’s Autumn Statement by leading City banking expert Bob Lyddon, the UK would be able to recoup £9.8 billion of taxes, including corporation tax, currently lost through the legal avoidance by giant corporations such as Google, Facebook and Starbucks.

The infamous so-called “Google tax” allows the corporate giants to move profits to countries such as Ireland and Holland to avoid paying their fair share in Britain through a Single Market mechanism known as “Freedom of Establishment”.

Philip Hammond and David DavisGETTY

Philip Hammond currently plans to end the UK deficit sometime after 2020

This translates as putting brass plaques on offices in other Single Market countries while using London or other parts of the UK as a base.

The big multinationals then “work in tandem” with EU states like Ireland, Holland and Luxemburg to run their UK sales in their countries.

He also finds that the UK would also benefit from another £10.2 billion in investment from the same corporations once they have to declare their profits in Britain.

He finds that using Single Market rules high paid jobs are being taken abroad while £5.8 billion is invested in low paid jobs in the UK.

Outside the single market he calculates that the investment will have to treble to £16 billion mostly in high paid jobs and training.

Mr Lyddon said: “While the legitimate tax avoidance of multinationals is seen as a national scandal few understand how they do it and the role of the Single Market in making it possible.

“While we are in the Single Market the UK can do nothing to oppose this – but once outside the Single Market the UK operations of multinationals will continue but then be liable for tax, while the high quality jobs and investment will be drawn to our shores.”

A Google signGETTY

The ‘Google tax’ lets multinationals avoid paying UK tax by moving profits to countries like Ireland

In another boost for Brexit Britain, a new report has said that wages in the UK are set to rise next year by 2.5 per cent easily outstripping the EU average of 1.7 per cent

The global study by the Korn Ferry Hay group makes a mockery of the Remain claims that a Brexit vote would see people’s wages fall along with an economic collapse which did not happen.

It also challenges the claims made by the EU-funded Institute for Fiscal Studies (IFS) last month that Brexit is set to give the UK a “dreadful decade” in low wages.

Ben Frost, of the Korn Ferry Hay Group, said: “When it comes to pay rises in the new year, workers are still better off in the UK rather than France or Germany.” 

Published at Tue, 06 Dec 2016 00:01:00 +0000