Much of what Stephen Fry says here is correct. London already has a global tax haven status if you are outside British dominions this will gain strength after Brexit and will only increase the UK wealth gap. Funds will be domiciled here on a low if any tax basis, financial bonuses will be paid on a low if any tax basis.
Trump’s tax deal has increased corporate profit margins but not perculated down to wage increases. Somerset Capital Jacob Rees-Mogg’s company has relocated to Dublin this could change with no deal Brexit and cheap fund management domicile in the UK. Luxembourg, Liechtenstein, Channel Islands, Isle of Man and to a degree British dominions Bermuda and Cayman Islands have already been pressurised out of the offshore business mainly by EU legislation.
Immigration has always been a Red Herring. This is a game of deregulation a game the EU has been combating.
This direction will increase a governments concentration on London the North of the UK will continue to suffer from low investment especially with reductions in industry such as cars. You have already seen where British steel is going. Farage, Johnson and Gove are extremely dangerous and financially motivated much of this is about securing for the rich the London driven financial services industry a necessary industry but not at the expense of the country.
The US has been securing the control of the global banking system for sometime now. The big blocks China and the EU to a lesser degree Russia will be able stand up to any US pressure. Britain will be exposed both financially and trade.
There are many legitimate arguments on both sides of the referendum divide. Brussels and its bureaucrats have been removed and disinterested in the real working and living populations of not just the UK but throughout Europe. This is now giving rise to a worrying move to the ultra-right-wing. Brussels bureaucrats along with many of the key national governments have not been listening and this is allowing the gap between the wealthy and the poor to increase and I now include the middle classes in the poor. With the rising costs of food utilities and housing the middle classes are now under substantial pressure. The outcry from a referendum that I believe should never of happened could prove to be one of the greatest protest votes in history. Unfortunately, this referendum could become an economic disaster if politicians continue in their current vein .. I have little doubt that the UK will find a way to survive possibly as a smaller economy providing its politicians get tough and really believe in a direction.
The problem I have with this referendum is that as one man one vote, one company one vote the final word has been left to the man on the street. It was like loading a gun to fire at a target no one could see. The ruling classes did little to explain the direction to fire in. Consequently, most voters voted on the basis of misunderstanding. In a previous blog I pointed out why I believe the immigration issue was a red herring, as it is estimated that between 1995 and 2011 migrants made a positive contribution of more than £4 billion ($6.4 billion) to Britain, compared with an overall negative contribution of £591 billion for native Britons. Between 2001 and 2011, the net fiscal contribution of recent arrivals from the eastern European countries that have joined the EU since 2004 has amounted to almost £5 billion. Even during the worst years of the financial crisis, in 2007-11, they made a net contribution of almost £2 billion to British public finances. Migrants from other European countries chipped in £8.6 billion. Research by Christian Dustmann of University College London and Tommaso Frattini of the University of Milan
I have heard many incorrect assumptions made on reasons for voting Brexit from bringing back democracy to non-elected MEPs in Brussels. Democracy does not exist here or elsewhere the only thing that matters is does your country have a workable government that protects the people and increases their wealth. The UK like most counties is run by an establishment not all elected. MEPs are elected every 5 years.
The Conservatives, the party at the time in governing coalition with the Liberal Democrats, were pushed into third place for the first time in a European Parliament election, the same position as Labour in the previous 2009 European Parliament election. It was also the first time since 1984 that the largest opposition party failed to win the European Parliament election.
Figures released in December 2014 showed that the Conservatives and UKIP each spent £2.96m on the campaign, the Liberal Democrats £1.5 million and the Labour party approximately £1m.
Unfortunately, few people take any notice of European elections and this election happened with only a 34% turnout. I am only pointing this out and as many will demonstrate to me there is much wrong with this system. However, where is the will to make it work.
The plunge has now been taken and will come down to a rather ineffective so called political elite to negotiate the best divorce possible. There are going to be many problems the first is the hope that an EEA (European Economic Area) deal similar to Norway’s can be negotiated. The European Economic Area (EEA) is the area in which the Agreement on the EEA provides for the free movement of persons, goods, services and capital within the internal market of the European Union (EU). Norway’s deal includes the acceptance of open borders. As this election was fought and won on immigration this will not be an acceptable compromise for the UK people.
It has also been muted that banks and financial groups should wait before moving, as a new Markets in Financial Instruments Directive (MFID) is about to be launched. Markets in Financial Instruments Directive2004/39/EC (known as “MiFID”) as subsequently amended is a European Union law that provides harmonized regulation for investment services across the 31 member states of the European Economic Area (the 28 EUmember states plus Iceland, Norway and Liechtenstein). The directive’s main objectives are to increase competition and consumer protection in investment services. As of the effective date, 1 November 2007, it replaced the Investment Services Directive (ISD). My understanding and correct me if I am wrong is that a state must have a EEA agreement in place to be part of MFID. Referendum
MIFID is very important to London and the UK to be able to participate in such an agreement.
However, a more important issue is the clearing of Euro denominated business. It is already the European Central Bank’s view that euro-denominated business worth hundreds of billions of euros would be better executed – or “cleared” – on the continent. This is the reason for HSBCs indication that it may move a 1000 jobs to Paris others could follow. This could potentially be a major loss for the city. Some say up to 70,000 jobs could go. These are real issues that the average voter has no knowledge of. Without the city the economy will shrink and this will have a major effect on the lifestyles of the average voter.
Other myths that we need to stop and take count of, firstly Britain is not a member of the Schengen agreement so why can’t border controls be put in place now. This points more to UK government political failure than an EU issue an an underfunded border service.
Of course we all Know about the misrepresentation of the £350 million figure closer to £110 million. A case that the advertising standards committee won’t even look at. Now it is being admitted that the money won’t be available until exit in 2 years + and by then there could be a new government in place with other pressing problems, they may not want to use that money for the NHS. Unfortunately, the British public continue to get stitched up by the political class in Brussels and the UK.
This morning a Nordic trade bloc has been muted this could be a very viable solution for the British even keeping Scotland and Northern Ireland as part of the Union and solving the problem of a corrupt and disjointed Brussels. Such a bloc could have the strength to force deals out of the EU; especially with the EU falling trade figures; while being free to negotiate internationally.