Brexit boost! Boris plans massive tax cuts to relaunch coronavirus hit economy

Brexit boost! Boris plans massive tax cuts to relaunch coronavirus hit economy

The UK has seen a big drop in output since COVID-19 hit with some predicting the steepest recession in 300 years. The Government has also committed to radical planning reform in a bid to boost economic growth and provide Britons with more homes.

According to the Sunday Telegraph, Mr Sunak will shortly announce a programme of tax and red tape cuts that will come into effect next year after the Brexit transition period has ended.

Prime Minister Boris Johnson has already ruled out any extension to the Brexit transition period, during which the UK continues paying into the EU’s budget and adhering to many European regulations.

Earlier this month Mr Sunak announced an immediate stamp duty holiday on properties worth up to £500,000 in a bid to support the housing market.

The Chancellor is also planning to create ten new “freeports” within a year of the transition period ending according to the Sunday Telegraph.

These areas would have more relaxed planning restrictions in a bid encourage investment and development.

The paper reports cities, towns and regions will be able to bid to become a “freeport” after this autumn’s budget.

Those which are selected will reportedly see cuts to stamp duty and business rates, capital allowances and planning law relaxation.

A second wave of measures will then see national insurance contributions, import VAT and customs duties slashed for the new freeports from April 2022.

READ MORE: Boris Johnson rejects pressure from BLM to redesign honours emblem

Earlier this week Michel Barnier, the EU’s chief Brexit negotiator, said there was no “added value” for Britain in leaving the EU.

Writing in the Sunday Telegraph Mr Gove said: “Leaving the European Union is, I’ve often argued, a bit like moving house.

“Instead of being lodgers under someone else’s roof we are choosing a new place in the world where we’re in control.

“Four years after we made the decision to leave the EU, the reasons for moving are stronger than ever.”

He added: “Taking back control of our economy means we can put in place the right measures for our Covid recovery.”

Mr Gove also said an additional £705million would be spent upgrading Britain’s borders to ensure the country is ready to leave the Brexit transition period next year without a new trade agreement if needed.

Trade talks between the UK and EU will resume later this month on July 20.

Thus far Britain has recorded more coronavirus cases and deaths than any other country in Europe.

As of Saturday the total UK COVID-19 death toll stood at 44,798.

Mr Johnson has suggested wearing masks in shops could be made mandatory in a bid to combat the disease.

Published at Sun, 12 Jul 2020 04:51:03 +0000