{"id":145714,"date":"2024-10-31T19:47:46","date_gmt":"2024-10-31T09:47:46","guid":{"rendered":"https:\/\/www.worldcargonews.com\/?p=52293"},"modified":"2024-10-31T19:47:46","modified_gmt":"2024-10-31T09:47:46","slug":"britain-shifts-radically-to-a-tax-and-spend-economy","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=145714","title":{"rendered":"Britain shifts radically to a tax and spend economy"},"content":{"rendered":"

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The new UK chancellor, Rachel Reeves, yesterday became the first ever woman in the office to deliver an annual budget statement. The headlines have been filled with talk of taxation that affects the cost of employment and inheritance, but there was also a massive public borrowing programme, which will be used to invest in national infrastructure, with transport, rail and ports all in line for spending.<\/p>\n

As always, it\u2019s about the economy, stupid. Yesterday, Britain\u2019s economy took a wild swing towards high taxes and high spending. The new left-wing Labour government delivered its first budget. Predictably, it has already been called \u201cstupid\u201d by the political opposition. However, it is unquestionably the biggest tax-raising budget in UK history. The headline figure is a UK\u00a340bn tax bill for the British economy. However, some of that revenue-raising will be directed towards a programme of national infrastructure development, which reflects well on trade routes, both inland and international.<\/p>\n

Concerns across offshore energy sectors<\/h2>\n

The chancellor’s speech did not mention an embarrassing gaff over a retracted announcement (made earlier in the week) of further freeports. Instead, there was a vague reference to trade routes and maritime infrastructure.\u201cWe are confirming our plans to capitalise the National Wealth Fund [an investment vehicle, currently unfunded],\u201d said Rachel Reeves. \u201cTo invest in the industries of the future, from gigafactories to ports to green hydrogen.\u00a0Building on these investments is driving forward our modern industrial strategy.\u201d<\/p>\n

\u201cThe shipping industry\u00a0is vital to UK growth and prosperity, and announcements on\u00a0green hydrogen hubs and investment into customs areas at freeports are welcome,\u201d said the influential UK Chamber of Shipping<\/a> in an official response. \u201cHowever, there are legitimate concerns across offshore energy sectors, which will need serious consideration.\u201d<\/p>\n

Re-announcing existing projects<\/h2>\n

The Chamber of Shipping urged the government to be bolder still. \u201cWe now need to go further and use Government investment to unlock wider shipping industry finance for key projects,\u201d said their statement. \u201cThis includes delivering on training of the workforce of the future, leveraging the creation\u00a0of Skills England, and delivering new maritime infrastructure.\u201d<\/p>\n

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Inland infrastructure, such as the TransPennine Route Upgrade, will improve trade routes around the North of England<\/figcaption><\/figure>\n

On shore, the prospect of transport investment was cautiously welcomed. \u201cLike any other sector, the rail industry needs certainty to succeed,\u201d said Noel Dolphin, Head of UK Projects at\u00a0Furrer\u00a0+\u00a0Frey – an engineering technology company that has pioneered railway electrification. The Swiss headquartered company has been developing a system of retractable overhead wiring<\/a>, specifically designed for freight terminal operations. \u201cIt was good to hear Rachel Reeves confirm the futures of several rail projects that are already underway,\u201d he said, noting particularly an extensive upgrade project to railways connecting ports in the north of England, including Liverpool and Hull (the TransPennine Route Upgrade). \u201cHowever, merely completing existing rail projects is a far cry from the bold action needed to secure the climate resilience and modern rail network only a rolling programme of electrification\u00a0can\u00a0deliver.\u201d<\/p>\n

Tariff-free trade<\/h2>\n

The Budget speech is only a snapshot of the legislation it introduces – albeit a 76-minute-long exposure of a snapshot. The Budget Statement is a vastly more detailed document<\/a>, running to several hundred pages. Hidden within it are the details of economic policy, all of which can be significant. For example, read through to page 137, and the maintenance of a tariff-free import regime is affirmed. The government says this is to avoid unnecessary costs for UK businesses. \u201cThis measure will extend, until June 2026, tariff suspensions on goods ranging from aluminium frames used by UK bicycle manufacturers to ingredients used by UK food producers,\u201d says the Statement. This is a line that cuts across trade, industry and foreign policy.<\/p>\n

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Attracting green shipping iniitiatives. Nuclear transport vessel Pacific Grebe at dock in Southampton with the innovative Fastrig wingsail deployed<\/figcaption><\/figure>\n

In the detailed statement, the government confirmed funding for Investment Zones and Freeports across the UK. This includes the approval of what they call the \u201cEast Midlands Investment Zone\u201d to support advanced manufacturing and green industries – in the heart of the so-called Logistics Golden Triangle. The government did roll back on the Freeport\u2019s gaff, and \u201cconfirm\u201d that five new customs sites will be designated in existing Freeports. \u201cThe government will also work to ensure the Freeports policy model aligns with the national Industrial Strategy,\u201d the chancellor\u2019s statement says.<\/p>\n

Attract green shipping to the UK<\/h2>\n

The UK Chamber of Shipping has recommended some investment priorities that it believes the chancellor should pursue with urgency. \u201cSuch projects include shore power and the deployment of alternative fuels, which will need continued access to competitive R&D and commercial feasibility\u00a0grants, alongside access to the National Wealth Fund. This investment will create new jobs and attract green shipping to the UK, benefiting not just maritime areas but communities and supply chains across the country.\u201d<\/p>\n

\u201cThe government has created the National Wealth Fund to catalyse over \u00a370 billion of private investment,\u201d says the chancellor\u2019s Budget Statement. \u201c[We will] set out plans for a modern Industrial Strategy to support investment in growth-driving sectors, and [launch] a pensions review to unlock greater investment in UK growth assets. The markets have been sanguine in response to the government\u2019s plans. However the cost of bonds – the interest rates offered by international markets to the UK government – have marginally risen overnight. Hardly surprising – even a modest interest rate rise on \u00a370bn of borrowing is going to make a very healthy profit.<\/p>\n","protected":false},"excerpt":{"rendered":"

This week\u2019s UK Budget offers some interest for ports, trade and enviromental initiatives, but it offers more interest for the money markets.<\/p>\n","protected":false},"author":10,"featured_media":52297,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[6031,72,12152,14225,14226,1633,471,12339,13990,12154,85,13992],"tags":[12159],"class_list":["post-145714","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-budget","category-business","category-business-commerce-miscellaneous","category-freeports","category-furreyfrey","category-government","category-news","category-ports-terminals","category-rachel-reeves","category-shipping-logistics","category-uk","category-uk-chamber-of-shipping","tag-world-cargo-news"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t