UK Not to Become A Tax Haven

In an interview with French newspaper Le Monde, Chancellor Philip Hammond has said the UK will not reduce taxes or regulations to become a tax haven in a bid to compete with European rivals after Brexit.

Background

Chancellor Philip Hammond suggested earlier this year that Britain may lower corporate tax rates to attract companies and ensure competitiveness of Britain after it leaves the European Union. Chancellor Philip Hammond said that UK is "ready to take whatever steps are necessary to protect this economy from turbulence and when the process is over we are ready to provide support for British businesses as they adjust to life outside the EU."

Recognisably European

The Chancellor said that the UK will most likely remain a country with a social, economic and cultural model that is recognisably European. “I often hear it said that the UK is considering participating in unfair competition in regulation and tax. That is neither our plan nor our vision for the future,” he said.

"The amount of tax we raise as a percentage of our GDP puts us right in the middle of the pack. We don't want to change even after we've left the EU," he stressed.

Changing the Economic Model

The Chancellor was questioned about his earlier statements regarding an option of lowering the UK's corporate tax to stay competitive, but also to use it in UK-EU trade deal negotiations. During the interview, he clarified that there is a possibility that the UK could be forced to change its economic model to regain competitiveness.

Sources: Evening Standard, Sky News, Independent, Daily Mail

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