UK to attract Pinoy business

source: manila bulletin
MANILA, Philipines -- British Ambassador Stephen Lillie yesterday declared that the just announced 2011 budget of the United Kingdom could open the door to increased business between the Philippines and the UK.

Lillie explained that the budget will clearly make Britain a more attractive business location for Philippine investors and entrepreneurs.

"The message for businesses here in the Philippines could not be clearer," he said: "Britain is open for business."

Lillie said the budget had been accompanied by the UK government's "Plan for Growth," based around four overarching ambitions.

These are to create the most competitive tax system in the G20 group of major economies; to make the UK the best place in Europe to start, finance and grow a business; to encourage investment and exports as a route to a more balanced economy; and to create a more educated workforce that is the most flexible in Europe.

"Britain is the largest European investor in the Philippines, while bilateral trade between the two countries grew by 23 percent last year," Lillie said in a statement.

He said the measures outlined in the Plan for Growth "should obviously build on this," as they encourage more British businesses to trade internationally.

In addition, the London government is also creating the conditions for more Philippine businesses to invest in the UK.

"We already have an open trading economy with flexible labor markets and a world class research base for universities that are respected around the world," Lillie pointed out. "Now we're bringing down the barriers that hold enterprise back, including by creating the most competitive tax system in the G20.”

The 2011 budget was announced last Wednesday by the UK's Chancellor of the Exchequer George Osborne, who told the British parliament that last year's budget had been about rescuing the nation's finances.

He said the challenge now was to move from rescue to recovery and reform as he vowed to return the country to sustainable, balanced growth and lasting prosperity by rebalancing the UK economy from unsustainable public spending towards exports and private-sector investment.

According to Lillie, Osborne told Parliament that the UK corporate tax rate would come down to 23 percent by 2014 - 16 percent lower than America’s, 11 percent lower than France’s and 7 percent lower than Germany’s.

There will also be 11 Enterprise Zones across England, with simplified planning rules, super-fast broadband and tax breaks for busi-nesses.

Lillie said the British government was showing its determination to reduce the deficit, while setting out a new model of economic growth, based on investment, manufacturing and exports.

source: manila bulletin