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1653-days after the UK held a referendum giving Britons their first opportunity to vote on EU membership, the Conservative government of the United Kingdom has succeeded in Brexiting from the European Union and agreeing a basic free trade deal allowing mostly uninterrupted trade to continue between the two European neighbours.
While the timeframe (4.5-years!) seems a long time, keep in mind that it takes two to tango and that the EU seemingly did everything in its power to delay Brexit and a post-Brexit trade deal, and it only relented when British politicians showed the strength and resolve to get the job done.
Very noteworthy is that every time the UK government seemed to dither or lose confidence, the EU quickly ramped-up their effort to quash Brexit and the post-Brexit trade deal that followed-on a year later.
“Every day we teach others how to treat us.”
Indeed! Therefore, European Union leaders have taught United Kingdom leaders to firmly and resolutely pursue all future goals with the EU and to never, ever, show weakness or indecision.
I hope that lesson has been learned by UK politicians. If it hasn’t, someone has been busy studying far less important matters.
As Expected, There Have Been Some Delays at the Ports
Of course, this was expected. How could it not occur when both sides spent 4.5-years bickering, rather than solving problems?
But, you get what you pay for.
Perhaps if we paid UK Parliamentarians double the remuneration we do now, we’d be twice as happy with them? Hmmm…
Minor gripes aside, the Conservative government of Prime Minister Boris Johnson has gotten the job done — and that, in the middle of an unprecedented Coronavirus pandemic! Well done, Boris!
Yes, some minor adjustments will be required. It’s been reported by the BBC that some Northern Ireland shipments have been turned back or refused, and UK residents will face more paperwork than ever if they want to visit the EU, especially if they want to bring their pets along.
In summary, the whole process could’ve been smoother, faster and more complete. But aside from the few things to be worked out, Brexit and its follow-on trade deal with the EU has been delivered as promised by the Prime Minister and his government.
Hearty Congratulations to Prime Minister Boris Johnson, to his Conservative Party, and to other Brexit Supporting UK Parliamentarians!
Rather than suffering a failure of statecraft, the leaders of the United Kingdom and the European Union got the job done in the middle of a massive COVID-19 pandemic and they deserve a huge round of applause and our undying gratitude!
Finally, the UK can begin to maximize its opportunities and again become a full partner in the world community of nations.
Finally, the UK can forge its own trade deals with other countries and blocs.
Finally, the UK can design its own foreign policy to benefit the interests of the United Kingdom and its people.
Finally, the UK can create its own domestic policies to benefit Britons and visitors to the United Kingdom.
Finally, the UK can renew and re-energize its relationships with the other Commonwealth of Nations countries.
And the UK can begin to concentrate on what works best for itself and its people, instead of having to clear everything with a foreign power, first.
Even while we’re still under the shadow of the horrible Coronavirus pandemic, its clear to see that the UK’s future is going to be bright and prosperous. Just give it a few months and we’ll see a reinvigorated country — one that no longer hesitates to reach for better and produce better than ever!
Now the UK can Get On With Building a Better Britain!
Now that the EU restraints have been cast-off, the UK will have a free hand to solve its domestic and foreign issues, and to become all that it can and should be.
Brexit has occupied 4.5-years of time and effort, and there was precious little oxygen left in the room to discuss other matters needing attention.
First on the list must be to complete the campaign to eradicate COVID-19 from the United Kingdom, to further assist both individual Britons and those businesses hurtfully impacted by Coronavirus, and to reset the economy when it is safe to do so.
Second, the UK needs to level-up the incomes of those stuck in the bottom economic quintile — thereby ending homelessness in the UK. Maybe the government will create a programme to pay unemployed Britons a minimum wage (or better!) to plant 1-billion trees per year in the UK, neatly solving three problems at once; Homelessness, Unemployment, and helping the UK to meet its CO2 Reduction Targets via their natural photosynthetic process whereby trees store carbon for up to 500-years, in the case of oak trees.
Third, the UK needs to put a major push to become a major exporting country like Germany. I can hardly wait for that! However, it is inappropriate to spend money, time and effort on this in the middle of a major Coronavirus pandemic.
Fourth, the UK needs to finish the many projects still on the books — like HS2 and others. But closely following those projects should be a plan to reclaim 100-square miles from the sea surrounding the UK, annually. In a country of 68-million (as of last week) all the existing land will soon be spoken-for, and thankfully, much of the sea surrounding Great Britain is shallow and therefore perfect to build-up and fill. Beside the obvious benefit, is that seawalls at 40-feet above the high tide mark will build resiliency into the UK’s shorelines with easily available rock and gravel/soil. Doing so at-scale means creating half a million good-paying jobs and building dozens of scenic golf resorts and hotels, thousands of seaside homes, and themed communities to support them.
And that’s just the beginning of the benefits of Brexit, folks!
Thank you again to Prime Minister Boris Johnson, to government negotiators, to the UK Cabinet, and to all MP’s and Lords who followed the instructions of Britons and voted for Brexit and a post-Brexit trade deal! Well done!
Written by John Brian Shannon
Here’s a List of Seven Reasons that the UK Needs to Spend Real Money on it’s Ageing Rail Infrastructure:
- There are huge bottlenecks throughout the country’s railway routes and those bottlenecks make every other thing in the system worse, including timeliness, scheduling, customer satisfaction, and passenger safety.
- Congestion on UK roads is appreciably worse when the trains are unavailable due to labour strikes, weather-related problems, line maintenance issues and electrical power outages that affect the railway electrical grid.
- The UK will never meet it’s clean air commitments as long as most ground travel is by automobile, but when millions of Britons ride trains to get to their destinations, CO2 levels drop correspondingly, especially as the UK electricity grid continues to add more renewable energy capacity.
- In most cases, the UK rail experience hasn’t changed much over the decades. It’s overcrowded at peak times and under-utilized during the rest of the day. For the country that invented passenger rail systems in 1802 when Englishmen Richard Trevithick and Andrew Vivian received a patent for the world’s first steam locomotive, providing mediocre or average service isn’t good enough. Rail service in the UK could and should be the envy of the world.
- Rail Tourism. Most people in the UK take trains to get to and from work, to go shopping, or to visit Grandma at the weekend. But there are millions of people around the world who dream of riding in a posh railcar, seeing a foreign country from the viewpoint of a luxury railcar, eating gourmet food and tasting fine wines. If you’ve done it (I have) it’s an experience you’ll never forget — and you’ll want to do it again. The UK rail system (yes, the rail system alone!) could bring millions of pounds into the UK economy. Just by doing railways right.
- Building and operating HS2, removing longstanding bottlenecks throughout the UK rail system, combined with ongoing upgrades to make rail travel a truly world-class experience will create thousands of jobs — particularly if all new locomotives, rail cars, and rail track are manufactured in the UK.
- More capacity, better railcars, more user-friendly schedules and a higher passenger experience, will itself, cause millions more Britons to take the train to work, shop, and play, thereby helping rail operators to run a profit — even during non-peak times of the day — whether in ‘high season’ or the ‘low season’.
In short, there’s every good reason to build-up Britain’s rail system even at significant cost… because the benefits to the entire country, to Britons, and to the UK’s international tourism reputation are mind blowing.
Nobody likes paying taxes, that’s understood.
But sometimes, in order to fulfil the promises made during an election — the promises that were made to appease and please those who voted the present government into office! — taxation levels must accordingly increase to provide the things that voters have hired the government to accomplish.
The trick for governments is how to keep their election promises without losing the confidence of voters, and I therefore offer the following well-meant suggestions using the proven example of Canada’s economic miracle during the 1994-2015 timeframe:
- As in Canada, the national GST rate in the UK should be set to 7% and should always hover between 5% and 10% in order to arrive at a zero-deficit budget, year-in and year-out. The GST shouldn’t be required to do anything else except to balance the budget, or, in the best-case scenario, to paydown some amount of government debt during any subsequent economic ‘boom years’ for the economy. That keeps it simple. (Although Canada has strayed from this plan recently and is now beginning to pay a price for its lack of committent to it’s formerly strict budgetary goals).
- The national GST should apply to every single transaction in the UK and only medical items should be exempt, such as female hygiene products, emergency medical kits, plasters/band-aids, prescription medications, and diagnostic imaging equipment like MRI’s and Cat Scan’s etc.
- Other than those exceptions, not one thing should be exempt from the national GST which would raise the total tax take for the government by a significant amount. (This plan worked wonders for Canada when it was in an economic tailspin) See: Jean Chretien: Lessons from Canada’s ‘basket case’ moment.
- Things like fuel (any kind of fuel, such as fuel for aircraft, cars, pleasure boats and ships, locomotives, home heating fuels like kerosene or natural gas, coal, firewood, wood pellets, etc.) and every other thing that is sold in the UK should be GST taxable, including financial transactions of any kind, including fees paid for legal or financial advice, and on the fees to purchase mutual funds, bonds, and other financial instruments, and on homes, cars, lumber, kitchen gadgets, and every item or service sold in the UK.
- Also, part of Canada’s economic miracle which began in the 1990’s was to lower corporate tax rates to 15%, then 14.5% and finally to 14% over a number of years, with a special tax rate of 10% for small-cap companies. This stimulated SME growth in the country that continues to this day, Indeed, Canada barely noticed the global financial crisis of 2007-2009, and it remained the fastest growing G7 economy before, during, and for a time after the U.S. subprime mortgage crisis.
- The other important part of Canada’s economic miracle of the 1990’s and early 2000’s is that the government got rid of wasteful and overlapping government programmes — basically telling every government department that they had 5% “fat” built-in to their annual budgets and that each department (except for the Department of Defence) would be required to submit budget proposals for the next 3-years showing a 5% spending cut from planned spending levels — or the government would simply lop 5% ‘right off the top’ from said department without any further warning or consultation.
- Not only did these things work well, but Canada also managed to make significant payments to paydown the government debt which was negatively affecting the economy and was costing a fortune in annual debt servicing costs. This in turn, allowed the Canadian government more room to manoeuvre from a federal budget perspective in subsequent years as less government revenue was required to service the accumulated deficits (debt) of Canada’s federal government.
- The next government that came into power after Liberal Party of Canada’s Jean Chretien and Paul Martin, was Stephen Harper’s Conservative government which in 2015 implemented a brilliant stimulus package (a home renovation tax credit) that boosted the Canadian economy with only a tiny amount of stimulus. Which, as it happened, put every available tradesperson in the country to work for a full 3-years just to meet the demand. So many Canadians decided to spend more than the allowable $5000. tax credit amount to renovate their homes… that home building centres, home decorating centres, and car dealerships that sell tradesman vans and trucks could barely keep up with demand. It was the perfect solution to boost the economy after years of budget cuts designed to balance the federal government budget.
Rather than trying to reinvent the wheel, the new Chancellor of the Exchequer, Rishi Sunak might consider following the tried-and-true Canadian example of ending the many complicated and difficult to administer taxes throughout the UK economy and roll them into a simplified GST with a 7% rate that taxes everything except medical supplies and equipment, followed by a plan to lower government deficits to zero over 5-years (with legally-enforceable punishments for the government if it fails to meet its zero deficit targets) and by lowering the corporate tax rate to match Canada’s corporate taxation rates to stimulate the economy over the medium term, and by stimulating the economy with a modest tax credit for home renovations where better home insulation is a part of that programme which works for homeowners to lower their electricity bills and further stimulate the economy over the short term.
In this way, the UK government can begin its Brexit year on a sound financial footing, losing some confusing and overlapping smallish taxes while dramatically increasing its total taxation revenue, while at the same time it attracts new businesses to the UK and supports existing UK businesses with lower corporate tax levels, and by employing every single tradesperson in the country for at least the next 3-years.
Congratulations and best wishes to the new and highly-esteemed Chancellor of the Exchequer, Mr. Rishi Sunak!