[Politics] No Budget thread?

[Thunder Bolt]

What exactly is a “free port?”

It’s supposed to be an area where normal customs and taxes don’t apply.
Sounds ideal for money laundering imo.

 

[beorhthelm]

Sunak has borrowed as much in one year as McDonnell would have borrowed in five. And yes, Covid would have meant that they'd have to borrow more but the point is that's not necessarily financially crippling for countries to borrow money,

this remains to be seen. it always has been in the past, impacting investment and growth. the mantra is we ahve low interest rates so it doesnt matter. trouble is how does it work out if and when interest rates rise.

 

[Herr Tubthumper]

It’s supposed to be an area where normal customs and taxes don’t apply.
Sounds ideal for money laundering imo.

So if i have a load of dodgy items I choose a free-port to ship them through into the UK?

 

[Gazwag]

I’ve been furloughed on and off and had a second full time job whilst on furlough months,

I assume that second job is outside of your contracted work hours for the employment where you are furloughed

 

[Kinky Gerbil]

I assume that second job is outside of your contracted work hours for the employment where you are furloughed

My Full time employee signed off all second jobs whilst furloughed.

 

[beorhthelm]

So if i have a load of dodgy items I choose a free-port to ship them through into the UK?

not really. the "border" with checks and customs moves from the quayside to a boundary further away.

 

[Curryisgreat]

Does that mean next time I go to Middlesboro away it won't be full of c**ts?

I suspect there will be at least one in attendance...

 

[Billy the Fish]

[tweet]1367103603689873412[/tweet]

Weren't they so heavily tied up in EU regulation that they were effectively useless?

 

[Neville's Breakfast]

Sunak has borrowed as much in one year as McDonnell would have borrowed in five. And yes, Covid would have meant that they'd have to borrow more but the point is that's not necessarily financially crippling for countries to borrow money,

There is a big difference in borrowing to fill a sudden demand deficit (from Covid) and borrowing in ‘normal’ times. Huge difference in inflationary impact for a start. Doesn’t mean McDonnell was wrong, it’s just that you are not comparing like with like.

 

[Simster]

not really. the "border" with checks and customs moves from the quayside to a boundary further away.

The reason nearly all free ports were closed is because they made it easier for terrorism and tax avoidance to go unnoticed.

Do we really want this strategy on our shores?

 

[beorhthelm]

The reason nearly all free ports were closed is because they made it easier for terrorism and tax avoidance to go unnoticed.

Do we really want this strategy on our shores?

sounds like a matter of implementation and policing. whether we want it depends on the format of the free port. if its a simply an extended boundary seems pretty pointless. if its about having an industrial zone for manufacturing without tariffs, seems a promising idea.

 

[Herr Tubthumper]

not really. the "border" with checks and customs moves from the quayside to a boundary further away.

So, just suppose Dover was chosen as a Freeport.....can you give some examples of where this new border might be?

 

[Billy the Fish]

Isn't the idea that you put them in deprived areas to stimulate the local economy?

I've no idea if they're a good idea or not, but surely there must be a working example somewhere in the world otherwise governments wouldn't keep trying the format
.....or maybe they would

 

[beorhthelm]

So, just suppose Dover was chosen as a Freeport.....can you give some examples of where this new border might be?

i dont expect that would work due to the nature of the traffic. somewhere like Felixstow or Tilbury is more suitable, Humberside and Teeside have been mentioned.

Isn't the idea that you put them in deprived areas to stimulate the local economy?

I've no idea if they're a good idea or not, but surely there must be a working example somewhere in the world otherwise governments wouldn't keep trying the format
.....or maybe they would

many in far east, notably Shenzhen. bit different starting point but did rather well.

 

[Herr Tubthumper]

i dont expect that would work due to the nature of the traffic. somewhere like Felixstow or Tilbury is more suitable, Humberside and Teeside have been mentioned.
.

I’m not getting what you mean. Say Tilbury, where will the customs be? In land? In the sea?

 

[beorhthelm]

I’m not getting what you mean. Say Tilbury, where will the customs be? In land? In the sea?

oh i think you know well enough its on land. heres a handy primer on the concept.

 

[franks brother]

Forgive my utter ignorance of government finance, but when HMG borrows £350bn but how do we borrow the money from?

 

[beorhthelm]

Forgive my utter ignorance of government finance, but when HMG borrows £350bn but how do we borrow the money from?

pensions, investment funds, businesses, foreign investors.

 

[WATFORD zero]

Forgive my utter ignorance of government finance, but when HMG borrows £350bn but how do we borrow the money from?

You, Me, Our children, and possibly, our children's children. Sorry

 

[Neville's Breakfast]

Forgive my utter ignorance of government finance, but when HMG borrows £350bn but how do we borrow the money from?

pensions, investment funds, businesses, foreign investors.

Via the bond market. The Government sells bonds to investors to raise cash and pays interest to the buyers. It’s just another way of borrowing money and paying interest. The rate will be lower than in most of the corporate bond market as the risk of Government default is lower. Bond buyers will be attracted by the overall risk reduction.

You, Me, Our children, and possibly, our children's children. Sorry

Not really. How else do you expect pension funds etc to invest our money ? They will likely increase the value of funds under management from a hedged bond portfolio.