A global corporation tax is a terrible mistake

International cooperation is alive and well – at least when it comes to raising taxes. One hundred and thirty six countries have now signed up to a global minimum corporation tax of 15 per cent, proposed by G7 countries in June and pushed heavily by the UK Treasury. This is another step forward for what is thought to be the biggest overhaul to the international tax system in a century. The installation of a corporate tax floor is part of a comprehensive effort to reform how multinational companies are taxed: that is, to more precisely target where profits are being made (instead of where products are being created). ​​Firms with

Is the UK taking advantage of its vaccine success?

UK GDP ever so slightly edged up in February, growing 0.4 per cent according to today’s update from the Office for National Statistics. No surprises here: there were no changes to lockdown restrictions between January and February, which gave the economy little room for manoeuvre. The ONS has revised January’s GDP fall from 2.9 to 2.2 per cent: still a contraction, but another good indicator that businesses have significantly adapted to lockdown rules, which has meant that this winter’s lockdown didn’t plunge GDP down to record levels as it did last spring. Still, February serves as another reminder that – despite spectacular market innovation – there is a ceiling on

Britain is set for the slowest economic recovery in the G7

Britain is set for the slowest economic bounce-back in the G7 and one of the slowest recoveries among wealthy nations, according to new forecasts published today by the Organisation for Economic Cooperation and Development. The OECD has updated its forecasts for global economic recovery, showing a return to pre-Covid GDP levels by the end of next year. The central scenario estimates a 4.2 per cent fall in global GDP this year, matched by a 4.2 per cent lift next year – while suggesting that its ‘upside scenario’ becomes more likely if successful vaccines are rolled out at a relatively fast pace. But while these latest forecasts bode better for the global economy,

Is Britain set to be the sick man of Europe?

The global lockdown has seen economies shrink and unemployment soar across the world, pushing governments to borrow at rates never seen in peacetime. On Wednesday, the OECD published country-by-country estimates for the economic hit – and its projections for the UK are some of the worst. Under the scenario of no second wave (that is, assuming countries won’t need to lockdown again this year), Britain’s economic downturn is forecast to be the worst in the G7, and fourth-worst in the OECD, with an 11 per cent fall in annual GDP. In the case of a second wave, prospects still aren’t great: in the G7, Britain’s 14 per cent downturn is on