Andy Burnham’s push to cosy up to Europe could hand Britain a growth windfall and its wealthiest residents an escape hatch in the same stroke, warns the CEO of deVere Group, one of the world’s largest independent financial advisory organisations. The comments from Nigel Green come as the prime minister calls on MPs to back closer ties with the EU, after revealing he’s been told Russia did meddle in the 2016 Brexit vote. He says: “Closer ties with Europe will be good for the economy, there’s no question about it.
Investors need to factor in both.” Burnham says Brexit has done more harm than good and refuses to rule out rejoining after the next election. Closer ties could claw back up to 1.2 percentage points of it. He continues: “I’d expect markets to take this well.
Sterling tends to benefit when the relationship with Europe looks more settled, and British shares have looked cheap compared with their peers for a long time. Closer ties could help change that. The top 1% of earners pay around 27% of all income tax.
And Britain was forecast to lose 16,500 millionaires last year, more than any other country. If the tax burden keeps rising and the state keeps growing, we risk losing the entrepreneurs and investors the economy depends on, and we won’t attract new ones to replace them. Nigel Green concludes: “Alongside the EU reset, the government needs to get domestic policy right.
This means a competitive tax system, a planning process that doesn’t hold projects up for years, and enough stability for businesses to plan ahead with confidence. Get both of these right and it can be one of the most attractive places in Europe for capital. It does not cost much, but worth your attention.
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