The Confederation of British Industry has raised calls for the UK to remain part of the European Union, with claims that an estimated gross domestic product of 4-5 per cent per year that is provided by its membership could be lost. The CBI has released a report that attempts to argue that heavy financial losses will be incurred if the UK steps away from the EU, as currently the group estimate that the link provides £3000 in annual income per household within the British Isles.
With many members of the EU still struggling to cope with the aftermath of the global financial crisis, the report notes that there is increasing unrest with the Union, particularly towards what many feel to be an overbearing hand in matters of authority. In seeking to address this view, the CBI published their report, titled, “Our Global Future: the business Vision for a Reformed EU.” The thrust of the group’s argument focuses on the need for a revision of current practices in order to allow a single market to be effective.
Earlier this year, David Cameron set a referendum for 2017 to contest whether the UK should remain in the EU. In response to this decision the report has been commissioned to attempt to redress the balance of opinion towards continued membership and what this can provide. John Cridland, the director-general of the CBI, noted that, “Contrary to popular myth, the UK is influential in the corridors of Brussels and will still be as long as we play our cards right.”
Cridland continued to say that, "We all need to know where Britain’s future lies in a changing global economy. We have looked beyond the political rhetoric to examine the pros and cons of EU membership and British business is unequivocal; the Single Market is fundamental to our future.”
Although clearly in favour of continued membership to the Union, Cridland was clear that the group could only see the UK remaining in the EU if reform was at the forefront of Great Britain’s continued membership. He said that, “We are better off in a reformed EU than outside with no influence. I am clear that the ever closer union of the eurozone is not for Britain. The big reform issue is to ensure that Britain’s membership of the Single Market and the EU of the 28 does not become damaged or diluted by the eurozone’s drive for greater integration.”
It was reported yesterday by Sky News that the Government is heeding warnings of a housing bubble developing in London, as it has been suggested that the chancellor is considering the implementation of a capital gains tax on foreign owners of property in the UK. The report went on to suggest that the Treasury had already looked into the costs involved in such a measure, and the plan could be unveiled later this year. It is thought that the plan would raise millions for the Treasury, and would aid in curbing potential unwanted spikes in pricing.
As noted in many quarters, while the property market in London has seen unprecedented raises in value over 2013, the rest of the UK has fared less well. Nationwide’s report into the average rise in property values in the UK evidence that in the most profitable areas of the capital values have increased by 12 per cent, but the average rise for the UK has been 4.3 per cent for the year. What should be noted is that much of the latter percentage has been made up by rises within London.
Article By: Simon Butler, Senior Mortgage Consultant at Contractor Mortgages Made Easy
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