Brexit has made supply shortages worse, government spending watchdog says

Asia's Tech News Daily

Supply shortages which are holding back growth, raising prices and putting pressure on wages have been made worse by Brexit, the government spending watchdog has said.

Ministers have repeatedly blamed the pace of the global recovery from Covid for supply chain problems, including shortages of HGV drivers and poultry workers that have led to the petrol pump crisis and fears of Christmas food shortages.

But the independent Office for Budget Responsibility (OBR) on Wednesday said these supply bottlenecks have been “exacerbated” in the UK by “changes in the migration and trading regimes following Brexit”.

The assessment came in the OBR’s Economic and Fiscal Outlook published alongside the Budget, in which Chancellor Rishi Sunak announced several measures to “seize the opportunities of Brexit”.

To cheers from Conservative backbenchers, Mr Sunak revealed tax breaks for ships that fly the Union Jack under post-Brexit changes to attract the world’s largest merchant navy firms to the UK.

Those that fly the Red Ensign flag and those that help the UK reach net-zero will stand a better chance of being accepted to the tonnage tax regime, which means they can pay less, based on the amount they can carry rather than the profits they make.

The Treasury is portraying the move as a Brexit benefit because the UK previously had to obey EU rules which meant there was no recognition of the difference between a ship flying the Union Jack and flags from other European countries.

  • Latest live updates after Rishi Sunak delivers the 2021 budget
  • ‘The high-spending Budget had Boris Johnson stamped all over it’
  • Alcohol tax slashed for beer and sparkling wine
  • Rishi Sunak announces Universal Credit taper rate will be cut to 55p
  • Fuel duty freeze remains in place amid soaring petrol prices
  • Watch Rishi Sunak’s 2021 Budget speech in full
  • How much the UK national living wage will rise after Budget 2021
  • The difference between Minimum Wage and National Living Wage

Mr Sunak also said leaving the EU gave the UK the opportunity through “legislative flexibilities” to reform the alcohol duty system to ensure drinks are taxed in proportion to their alcohol content.

The Treasury also touted a controversial cut to air passenger duty on domestic flights as an “opportunity of Brexit”.

Mr Sunak told the Commons: “We want this country to be the most exciting and dynamic place in the world for business.

“And now that we’re left the EU, we have the freedom to do things differently and deliver a simpler, fairer tax system.”

It came as the OBR said the 13 per cent fall in the number of HGV drivers in the two years to June was was “exacerbated by both delays in the certification of new drivers over the past year and post-Brexit limits placed on the hiring and utilisation of qualified drivers from the EU”.

The watchdog also found that the change to trade rules under Boris Johnson’s Brexit deal in January meant trade with the EU suffered more than with the rest of the world during the pandemic.

By August, trade with the rest of the world had recovered to 7 per cent below 2019 levels, while trade with the EU was down 15 per cent at the same time.

Paul Johnson, director of the independent Institute for Fiscal Studies, said the OBR document showed firms were suffering as a result of Brexit.

He told BBC News: “You will also see in the OBR document evidence of quite a big reduction in trade with the European Union, so the continued impact of the additional trade barriers that we have with the European Union is taking its toll on business as well.”

Brexit has made supply shortages worse, government spending watchdog says
© Provided by The i Read More – Featured Image

Ian Mulheirn, executive director for UK policy at the Tony Blair Institute, said: “While the Chancellor trumpeted newfound ‘Brexit freedoms’ to reform alcohol duties, what he didn’t mention was that Brexit has cut annual tax revenues by around £30bn. 

“This means that without the Brexit shock most of the past year’s £40bn tax raid would have been unnecessary. 

“We could have had respectably funded public services and avoided record tax rates. 

“But the legacy of Brexit has forced the Chancellor to choose. 

“Sadly, that’s one legacy of the past 11 years that the government doesn’t yet seem willing to fix.”

Internet Explorer Channel Network
Asia's Tech News Daily
News Related


Neil Bhatt-Aishwarya Sharma wedding: Bollywood's OG diva Rekha graces the reception; newlywed couple's reaction is UNMISSABLE

© Provided by Ghum Hai Kisikey Pyaar Meiin’s Neil Bhatt and Aishwarya Sharma held their wedding reception in the city recently. And guess what? Bollywood’s OG Diva Rekha graced ... Read more »

Bigg Boss 15: Shamita Shetty Against Devoleena Bhattacharjee For Real!

With Bigg Boss house being full of new VIPs, Devoleena Bhattacharjee, Rashami Desai, Rakhi Sawant, Ritesh, and Abhijeet Bichukale, the house has seemed to have an upgrade in the game. ... Read more »

Amazon aims to make AWS the greenest cloud options with investments in renewable energy projects

© Unsplash Amazon aims to make AWS the greenest cloud options with investments in renewable energy projects Amazon announced that it will make significant investments in renewable energy projects. The ... Read more »

Ashes: Wasn't disappointed, says Marnus Labuschagne after being overlooked for Australia captaincy role

Marnus Labuschagne Australia’s star batsman Marnus Labuschagne said he is not disappointed that he was overlooked for Australia captaincy role after Tim Paine’s resignation and that his focus is on ... Read more »

Supreme Court abortion hearing raises questions for senators

© Provided by Associated Press FILE – Associate Justice Brett Kavanaugh stands during a group photo at the Supreme Court in Washington, on April 23, 2021. During  his confirmation to ... Read more »

Covid news live: South Africa officials fear ‘widespread resurgence' after Omicron fuels 35% rise in daily cases to 11,535

LIVE – Updated at 05:59 © Photograph: Shiraaz Mohamed/AP A woman is vaccinated against Covid-19 at the Lenasia South Hospital, near Johannesburg, on 1 December. South African doctors say the ... Read more »

Country diary: A calm sea with a shoal of mullet swimming just below the surface

There was a chill in the air as I wandered down to the harbour, but the breeze had dropped and the sea lay as calm as the neighbouring mill pond. ... Read more »

‘There is still hope here' in Hong Kong: Zhang Xiaogang, Chinese contemporary artist, tours M+ museum

Zhang Xiaogang, the first major Chinese art figure to tour M+, admits to being pleasantly surprised by Hong Kong’s new museum and its exhibitions He says it would be ‘difficult’ ... Read more »

21% of Facebook users in the Philippines experienced harassment —study

© Reuters Woman holds smartphone with Facebook logo in front of a logo of Meta in this illustration picture taken October 28, 2021. REUTERS/Dado Ruvic/Illustration/File Photo A new study among ... Read more »

Will we end up having booster jabs forever? Here's everything you need to know

© Provided by The Telegraph Covid booster jabs could be here for years A year after Britain became the first country in the world to approve a coronavirus vaccine, the ... Read more »

Omicron may throw wrench in companies' plans to return to office

© Reuters/Jason Reed FILE PHOTO: Office workers and shoppers walk through Sydney’s central business district in Australia By Ben Klayman (Reuters) – Company executives are beginning to consider different permanent ... Read more »

Checking Out Our New Aftershock Corsair Flow PC

© Provided by Geek Culture Since the launch of the new 12th Gen Intel processor, there’s never been a better time to build a new PC to stay ahead of ... Read more »

Glossy posse! Mysterious women snapped accompanying Elizabeth Holmes to criminal trial 'are her Stanford sorority sisters': Alleged Theranos fraudster sent out plea asking them to come and support her

Elizabeth Holmes called former sorority sisters at Stanford University to ask if they would accompany her to court as a show of support during her fraud trial The disgraced former Theranos chief executive has been spotted by mystery women who've refused to reveal their identities throughout the trial The 'seen with friends' strategy is a common one, and is often beneficial when jurors see the accused supported by a number of people, legal analysts saidWhile Holmes' managed to convince former sorority members, others from her past said the stunt was merely done to improve optics and control the narrative Holmes is accused of nine counts of wires fraud, and two of conspiracy, and could face 20 years in prison if convictedThe 37-year-old's ex, Sunny Balwani, faces the same charges, and will be tried separately next year   Read more »

Farmers press for withdrawal of cases as first step to end stalemate, other demands may be resolved through talks

© Provided by The Times of India NEW DELHI: The protesting farmer unions may be pitching for six demands, but their most pressing ones at current juncture boils down to ... Read more »

'Lot of concern' over Russian military activity near Ukraine, top U.S. general says

© Reuters/POOL U.S. military brass testify in the House on Afghanistan By Phil Stewart WASHINGTON (Reuters) -The United States is tracking enough indicators and warnings surrounding Russian military activity near ... Read more »

Angela Merkel honored by German military with punk rock sendoff

Germany’s military honored Chancellor Angela Merkel with their highest ceremony for a civilian on Thursday, complete with an eclectic mix of music personally selected by the outgoing leader and punctuated ... Read more »

Cowed by Chinese regulators, Didi plans to delist from New York months after debut

By Julie Zhu and Kane Wu © Reuters/TINGSHU WANG Sign of Chinese ride-hailing service Didi is seen on its headquarters in Beijing, HONG KONG (Reuters) – Ride-hailing giant Didi Global ... Read more »

U.S. job growth likely picked up; unemployment rate seen at 20-month low

By Lucia Mutikani © Reuters/MIKE BLAKE FILE PHOTO: A restaurant advertising jobs looks to attract workers in Oceanside, California WASHINGTON (Reuters) – U.S. employers likely stepped up hiring in November ... Read more »

First two cases of Omicron variant case found in mainland France

COVID-19 vaccination center in Nice PARIS (Reuters) –France on Thursday reported its first two cases of the new Omicron coronavirus variant, as the government's top scientific adviser said it could ... Read more »

NHS forecasts 230,000 extra cases of PTSD in England due to Covid

Photograph: Graeme Robertson/The Guardian The NHS is forecasting there will be 230,000 new cases of post-traumatic stress disorder in England as a result of the coronavirus pandemic, official figures show. ... Read more »

Capcom's Live-Action Mega Man Could Potentially Stream On Netflix

© Provided by Geek Culture A live-action movie adaptation of Capcom’s Mega Man franchise has been on the cards since 2018. However, information surrounding the adaptation has been scarce. The ... Read more »

ONE: WINTER WARRIORS – Live Results And Highlights For Every Fight

© ONE Championship MMA fighter Stamp Fairtex stares down Ritu Phogat before their match at ONE: WINTER WARRIORS Winter has finally arrived, and ONE Championship’s finest stars are ready to ... Read more »

Crisis-hit Solomon Islands girds for further protests

© CHARLEY PIRINGI People clear debris from the streets in Honiara’s Chinatown after calm returned to the Solomon Islands capital The Solomon Islands is bracing for further political unrest, with ... Read more »

KENZO Sport Collection: Sportswear Meets Fashion

© Provided by Augustman Showcasing the house’s penchant for movement and colours, the latest KENZO Sport collection sees a plethora of stylish athleisure pieces in new hues and motifs. Despite ... Read more »

DUN P Pinang kecoh isu ahli politik dilarang masuk sekolah

© Provided by Free Malaysia Today Sidang DUN Pulau Pinang ‘panas’ ketika membincangkan isu pihak kerajaan negeri tidak dibenarkan masuk ke sekolah daif untuk memberikan bantuan. GEORGE TOWN: Sidang Dewan ... Read more »

Convert fintech initiative into revolution to empower people: PM Modi

Prime Minister Narendra Modi on Friday said that now it is time to convert fintech initiatives into a fintech revolution to empower people. He further said that India has proved ... Read more »

Garden Reach Shipbuilders rises 3% as firm aims to expand scope beyond warships

NEW DELHI: Shares of Garden Reach Shipbuilders and Engineers rose 3 per cent in Friday’s trade after a top company official said that the leading Defence PSU was transforming itself ... Read more »

Nine international travellers test positive for Covid-19 at Mumbai airport

Nine international travellers, including one from South Africa, who arrived at the Mumbai International Airport between 10th November and 2nd December have tested positive for Covid-19. Their samples have been ... Read more »

5 stocks where MFs raised stake by at least 50 bps in last 4 quarters

NEW DELHI: Mutual funds have raised stakes by at least 50 basis points in at least five BSE500 stocks in the last four quarters. Data showed that except for one, ... Read more »

Nun zeigt sich auch Romeo schwer verliebt

© imago images/PA Images Romeo Beckham und Mia Regan traten zum ersten Mal gemeinsam auf dem roten Teppich auf. Grosser Moment für Romeo Beckham: Am Montag hat der 19-Jährige mit ... Read more »

Ein wenig Cuteness gefällig? Hier geht's lang!

Cute News, everyone! Heute reden wir ein letztes Mal über den watson-Slang für Eichhörnchen. Versprochen. Ich habe auch schon das Resultat. Ihr müsst aber noch ein bisschen warten und zuerst ... Read more »

Sensex, Nifty rise as IT, energy stocks gain amid Omicron threat

Indian shares rose on Friday, as gains in technology and energy stocks helped markets push past concerns around the discovery of two cases of the new Omicron coronavirus variant in ... Read more »

Trotz weniger Patienten: Warum die Spitäler bereits jetzt zum Bersten voll sind

© sda Um Coronapatienten auf der Intensivstation zu behandeln, bedarf es viel Personal. Spitäler aus allen Ecken des Landes schlagen Alarm. Dabei hat es im Vergleich zum letzten Jahr substanziell ... Read more »

Air Pollution Updates: 'So You Want Ban on Industries in Pak?' SC Raps UP over its Toxic Air Explanation; Schools, Colleges in Delhi-NCR Shut

© Provided by News18 Air Pollution Updates: ‘So You Want Ban on Industries in Pak?’ SC Raps UP over its Toxic Air Explanation; Schools, Colleges in Delhi-NCR Shut The Centre ... Read more »

Cyber Jaagrookta Diwas: Students made aware about ‘internet use' across Jammu Division

© Provided by The Times of India JAMMU: Directorate of School Education Jammu organised a series of activities on Cyber Jaagrookta (Awareness) Diwas across Jammu Division to educate the youth ... Read more »

Are you a beginner to yoga? These 10 tips will help you get started

The practice of yoga dates back to pre-Vedic Indian times, possibly in the Indus valley civilization around 3000 BC. It has been mentioned in the Rig Veda and Upanishads, one ... Read more »

Rhea Chakraborty calls brother Showik ‘humble warrior' in recent post; Says ‘You inspire me every single day'

© Provided by Pinkvilla Rhea Chakraborty and her brother Showik had a tough time last year. They had to go through a lot of things yet today both of them ... Read more »

Akhanda Box Office Collection Day 1: Nandamuri Balakrishna breaks records with blockbuster numbers

© Provided by Pinkvilla Nandamuri Balakrishna’s Akhanda film under Boyapati Srinu’s direction has finally hit the screens. Despite being a non-holiday release, the film opened to a thunderous response at ... Read more »

Rollback of Char Dham Act has a message for all governments — free India's temples

© Provided by The Print Caving under pressure from protests by priests and their supporters, the chief minister of Uttarakhand, Pushkar Singh Dhami, has rolled back the controversial and unpopular ... Read more »

Poor demand for Star Health's IPO forces investment bankers to cut down on promoter offerings; GMP at ₹10 discount

© BCCL Poor demand for Star Health’s IPO forces investment bankers to cut down on promoter offerings; GMP at ₹10 discount The health insurer’s IPO was not fully subscribed even ... Read more »
On you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic