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What should the Chancellor do today?

Written on . Posted in Taxation.

The immediate aftermath of the Brexit vote was always going to be a period of disruption. The smart response would be to take advantage of the freedom available outside the strait-jacket of EU regulations. There are a couple of immediate boosts the Chancellor could give to the UK economy.

  • Reduce VAT on building works to zero for an initial period of two years.
  • Reduce VAT on restaurants and hotels to zero in Wales, Northern Ireland and everywhere else north of an east-west line running just south of Chester, again for an initial period of two years.

These measures are against EU rules but what can they threaten us with? They will also need to be paid for, but one place to look is the Council Tax, and another is the agricultural UBR exemption.