GDP Growth Trade Canada and UK Trade GDP / Sector Debt to GDP Deficits/Surplus Business Taxation Payroll Taxes Foreign Direct Investment Banking/Financial Services Sector Government

1. Economic and Government
Policies – United Kingdom –
June 25, 2016
By: Paul Young, CPA, CGA

2. • This presentation is one perspective when it comes to government
and economic policies for the United Kingdom

3. Paul Young - Presenter
Bio
• CPA/CGA
• 25 years of experience in Academia, Industry and Financial solutions
• Youtube Channel -
https://www.youtube.com/channel/UCAArky1bAXPSuV2NLtUnyLg

4. Agenda
• GDP Growth
• Trade
• Canada and UK Trade
• GDP / Sector
• Debt to GDP
• Deficits/Surplus
• Business Taxation
• Payroll Taxes
• Foreign Direct Investment
• Banking/Financial Services Sector
• Government

5. GDP / Growth
Source: Scotiabank Economics

6. UK Trade
Source: http://www.worldstopexports.com/united-kingdoms-top-exports/
Top Export Destinations

7. Canada and UK Trade
• Commercial and economic relations between Canada and the United
Kingdom are historically strong and mutually advantageous. The UK is
by far Canada’s most important commercial partner in Europe and,
from a global perspective, ranks third after the United States and
China. In 2010 total bilateral trade reached over CDN$27.1 billion,
and over the last five years the UK has been Canada’s second- largest
goods export market.
Source: http://www.canadainternational.gc.ca/united_kingdom-
royaume_uni/bilateral_relations_bilaterales/commercial-
commerciales.aspx?lang=eng

8. GDP by Sector – United Kingdom
Source: http://www.indexmundi.com/ and http://www.statista.com/ or http://www.tradingeconomics.com/united-kingdom/gdp

9. Debt to GDP – United Kingdom
• http://www.tradingeconomics.com
Reducing the deficit and paying
down the debt it has created are
among the Government’s main
economic challenges. Ministers now
have tough decisions to make over
how quickly they should tackle the
UK’s debt.
Source
:http://uk.businessinsider.com
And http://www2.deloitte.com

10. Surplus (Deficits) / GDP
Over the past six decades, budget
deficits have been the norm in the
UK, rather than a recession induced
exception. In those 60 years, the
budget has been in surplus on only
eight occasions, the last time in
2001/2, just before Labour once
more took the lid off public spending.
Source: http://www.telegraph.co.uk

11. Taxation – Policies – United Kingdom
• At 20 per cent, the UK has the joint-lowest corporate tax rate in the
G20 with the government planning to lower it to a further 18 per cent
in 2020.
• VAT
• Source - http://www.independent.co.uk, https://www.gov.uk/tax-on-shopping/vat-
duties/Deloitte

12. Social Security/Payroll taxes – United
Kingdom

13. Foreign Direct Investment – United Kingdom
• The UK’s success was broad-based. Despite a second year of decline in business services projects
across Europe, the UK grew its software and financial services sector projects, captured 35% of all
European headquarter (HQ) moves and led Europe on R&D projects. The UK achieved a leading
market share of 29% of US projects in Europe and was the main destination for investment in
Europe from France, Japan, Australia, Canada, India and Ireland.
• The UK secured 164 manufacturing projects in 2014, beating the 131 projects secured by
Germany. This was based on strong growth in the automotive, food, and machinery and
equipment sectors, We have become used to being told that the UK cannot compete in
manufacturing, but the results suggest that there is untapped potential and more attention
should be given to the “makers.”
• The UK had the highest number of FDI projects among European nations in 2014. The percentage
of total shares stands at 20% with 887 projects in 2014. The ability to convert FDI into jobs is
illustrated by the fact that the highest number of corporate headquarters are located in the UK
compared to other European nations. HSBC (HSBC), Royal Dutch Shell (RDS.B), and Unilever (UN)
have headquarters in London.
• Source - http://www.ey.com and http://marketrealist.com

14. Banking/Financial Sector – United Kingdom
• The report ranked Britain first amongst the world’s seven leading FinTech hubs, from
Silicon Valley to Hong Kong, having compared these FinTech markets against four key
criteria: the availability of talented staff, access to investment, the nature of
government and regulatory policy, and the demand for FinTech services.
• The report found that the UK has a particularly good policy environment for FinTech,
with the most supportive regulatory regime, and praised the Financial Conduct
Authority (FCA) as one of the most progressive regulatory bodies in the world when
it comes to FinTech.
Source: https://www.gov.uk/government/news/fintech-week-2016-report-finds-
britain-to-be-the-worlds-leading-fintech-centre

15. Government/United Kingdom
• David Cameron has resigned, bringing an abrupt end to his six-year
premiership, after the British public took the momentous decision to
reject his entreaties and turn their back on the European Union.
Source: http://www.theguardian.com/politics/2016/jun/24/david-
cameron-resigns-after-uk-votes-to-leave-european-union

16. Contact/other sources
• Other sources:
• Brexit - http://www.slideshare.net/paulyoungcga/brexit-exit-from-eu-united-
kingdom-june-18-2016
• Contact: paul_young_cga@Hotmail.com