Economy - - Nov 22,2016
UK Prime Minister Theresa May tried to reassure businesses that wary of a sudden change in rules that may arise when the UK leaves the EU.
Addressing the Confederation of British Industrys’ (CBI) annual conference, May seemed to convince business leaders of having adequate plans and strategies for them to sustain and prosper after UK’s exit from the European Union.
Since the Brexit referendum, investments have fallen dramatically in the country due to an uncertainty and reluctance among business corporations. Several business groups have pushed for a deal that would let them trade in the same way post-Brexit. CBI president, Paul Drechsler had raised concerns over indistinctness caused by the Brexit vote, focusing that businesses in the country should not be ‘left dangling of the cliff’ and that he has been seeking government’s support and cooperation.
Mrs May said that she understands companies’ concerns, assuring that the Government is conscious about the issues and it will provide clarity on its plans whenever possible. However, she also said that it won’t be possible to provide accounts of all the discussions that the government is taking on its economy.
During her speech, Mrs May announced an investment of $2 billion annually for research and development by 2020 and launch of an Industrial Strategy aimed to spread economic growth across the UK. She is also expected to sanction new funds in areas like robotics and biotechnology and facilitate innovations and new discoveries.
The Prime Minister had earlier stated that UK would acquire the status of having the lowest corporation tax rate among the G20 group of countries. Earlier in the year, UK’s annual budget slashed the corporate tax rates to 20% and the government plans to further reduce it to 17% by 2020.
Meanwhile, US president elect Donald Trump has already announced that his chief priority would be to cut corporate tax rates from 35% to 15-20% in the country.