In a recent column for the Daily Mail, former UK Prime Minister Boris Johnson has argued that Britain has not yet taken full advantage of Brexit and should now consider cutting corporation tax to enhance its competitiveness. Johnson suggests that the UK is still under the influence of the European Union (EU), even seven years after the Brexit referendum. He also criticizes the trade agreement negotiated by his successor Rishi Sunak, known as the Windsor Framework, claiming that it further ties the UK to EU regulations. Johnson emphasizes the need for the UK to diverge from the EU’s economic model and create an environment that encourages investment, growth, and wealth creation.

A More American Approach

Johnson begins by expressing his belief that one of the key reasons he supported Brexit was to enable Britain to escape the EU’s “tired and failing” economic model, with its cumbersome regulations and high costs. However, he argues that the UK has not yet achieved this escape, partially due to the impact of the COVID-19 pandemic. He points out that agreements like the Windsor Framework hinder the UK’s ability to differentiate itself from the EU, making it more challenging for the entire country, including Northern Ireland, to establish distinct regulatory regimes.

In comparing Europe’s economic performance, regulation, and tech industry with that of the United States, Johnson suggests that the UK should follow a more American approach. He highlights the need for the UK to become a place that attracts investment and facilitates faster business growth than any other European country.

One specific measure Johnson recommends is cutting corporation tax. He argues that instead of raising it, which has been proposed by the current government, the UK should undercut Ireland’s corporation tax rate. By doing so, Johnson believes that the UK can create an environment that is more conducive to personal and business tax and wealth creation. He emphasizes the importance of demonstrating that post-Brexit Britain is radically different and more appealing to investors.

Johnson acknowledges some progress made in certain sectors, such as biosciences and financial services, where the UK has already diverged from EU regulations. However, he encourages the country to go further and faster in implementing regulatory changes that set it apart from the EU and enhance its global competitiveness.

Summary

Boris Johnson argues that the UK needs to take further steps to capitalize on Brexit’s potential. Cutting corporation tax and diverging from EU regulations are among the measures he suggests to make Britain more competitive and attractive to investors. Johnson believes that the current trade agreement with the EU, the Windsor Framework, hampers the UK’s ability to establish itself as an independent economic entity. He encourages the government to adopt a more American approach to taxation and wealth creation to position the UK as a destination for growth and investment. Ultimately, Johnson’s message is for the UK to demonstrate that it is fundamentally different from the EU and can thrive outside its orbit.