Was it a cabinet reshuffle? No. It’s an opportunity for growth absent a fiscal stimulus. Be part of it!
By Dr. Raymond Davies Ph.D., Trade Horizons Associate, Colchester, UK. Chair, BABC-PNW www.babcpnw.org
Was it a cabinet reshuffle, not at all, it was a reshuffle in key government departments involved in growing the British economy indicating, I believe, the British Government is desperately searching for the dynamic entrepreneurial leadership to make an actual strategy for growth a reality. Particularly so absent the tax cutting route of fiscal stimulus, in fact the opposite! UK Corporation Tax goes up in the spring from 19% to 25% after many years of steady reductions.
What Changed
The Department of Business Energy and Industrial Strategy is no more, bits allocated off and a new department of Business and Trade emerges, under ardent Brexiter and dynamic rising star within the governing Party, The Rt. Hon. Kemi Badenoch MP, as Secretary of State. She was formerly the International Trade Secretary also known to want to reverse the 6% increase in Corporation Tax rates. This is to be the powerhouse Global Britain Department under her leadership. While the newly dedicated Department of Science, Innovation and Technology, will provide the continual drive for innovation to deliver productivity to create those new and better-paid jobs. it won’t without those entrepreneur leaders focused on market capture around the world.
Why the change
One way of achieving that kind of economic growth is in the introduction of Freeports in England’s under-developed parts combined with the Government’s levelling-up policies. The Prime Minister is a big fan of that idea to encourage firms to bring operations to a particular area by offering various tax breaks and other perks. The Levelling-up Minister, Dehenna Davison MP has said Freeports “will give local economies a massive boost, unlock new state of the art business spaces and create tens of thousands of highly skilled jobs.” while “maximising the opportunities of leaving the European Union to drive growth and throw our doors open to trade with the world.”
Freeports
© William via Unsplash
The English Freeports are to be national hubs for global trade and investment, these are to be reflective of the particularly successful approach in the USA with Foreign Trade Zones (FTZs). It is envisioned in the reshuffle with the two new key departments focused on growth, that these will help in the creation of local industrial innovation clusters trading along Britain’s bi-lateral Free Trade Agreements (FTA) corridors. With new and exciting entrepreneur leadership taking full advantage of, I believe, the vacuum in government leadership to facilitate industrial transformation, data analytics, clean energy/circular economy; professional services; medical/bio tech; and advanced manufacturing with internationalisation as the pillar of such cluster formation.
Window of opportunity
Be a part of this window of opportunity opened up by gathering and discussing market intelligence; using local and key bi-lateral FTA trade corridors to network and collaborate on supply chain synergies and develop rapid innovation through sharing knowledge and importantly customers.
The UK’s capacity to build these flexible SME supply (value) chain networks, or clusters, and project them into market capture constitutes a new kind of competitive advantage that can be demonstrated with business leadership and vision. Be a part of it!
Please contact Dr. Raymond Davies Ph.D., Trade Horizons Associate for more information raymond.davies@global.tradehorizons.com
Dr. Raymond Davies
Featured image: VE bunting and biscuits (c) Eleni Koureas via Unsplash
