Re:A Scenario Where Brexit Does Not Actually Happen
by threeseed on Sunday June 26, 2016 @10:13AM
(#11980856)
> There is now more money in the UK budget, where it gets spent is up to the next PM.
That money is worth significantly less since the GBP dropped in value. And if multinational companies start moving their European/EMEA headquarters to Frankfurt, Brussels, Berlin, Dublin etc then there will be significantly lower tax receipts. Of course with the UK rumoured to lose its last AAA credit rating government borrowing costs will be higher as well.
This idea that Brexit somehow meant more money for the UK budget is simply ridiculous. Any disruptive change of this nature always translates to lower growth whilst people adjust.
That money is worth significantly less since the GBP dropped in value. And if multinational companies start moving their European/EMEA headquarters to Frankfurt, Brussels, Berlin, Dublin etc then there will be significantly lower tax receipts. Of course with the UK rumoured to lose its last AAA credit rating government borrowing costs will be higher as well.
This idea that Brexit somehow meant more money for the UK budget is simply ridiculous. Any disruptive change of this nature always translates to lower growth whilst people adjust.