UK businesses eyeing shift to ‘more predictable’ tax regimes
cityam·- UK businesses are contemplating relocating operations abroad due to instability in the domestic tax and regulatory environment, as revealed in a survey by Baker Tilly International. - The survey indicates that 39 percent of UK firms have delayed or cancelled major investments due to uncertainty from rapid policy changes. - In contrast, businesses in the UAE report stable market conditions and lower disruption from political instability, with a significant number expressing confidence in their investment climate.BOE Mann : Recent geopolitical events have reinforced how exposed the UK economy is
Investinglive·- Bank of England Monetary Policy Committee member Mann emphasized the rising vulnerability of the UK economy to international shocks due to recent geopolitical events, necessitating a policy response. - He highlighted the complexities surrounding new financing sources and their impact on the UK's current account deficit, warning that tighter policy could trigger volatility in domestic financial conditions. - Mann noted that monetary policy cannot offset cost-push shocks from energy prices, making the trade-off between inflation and economic activity increasingly evident.