BrewDog’s Economic Proposal For A Post-Brexit UK

You’ve got to give it to BrewDog…The Scottish punk brewery, one of the UK’s fastest growing companies, is not only preparing for a post-Brexit economy, they’re advising the government how to best navigate this brave new world.

Here’s the deal

While the United Kingdom still struggling to leave the European Union as gently as possible, BrewDog recently issued a post-Brexit manifesto as to ways that Great Britain can continue to drive its economy in an increasingly tough global environment.

Right now UK brewers are reaping the benefits of favorable import/export arrangements that come with being part of the EU. As well as from a weakened pound which also came with the country’s vote to exit that agreement which has made UK goods such as beer more attractive and lead to an explosion UK food and drink exports.

But all that comes to an end once the UK’s impending divorce with the EU is finalized on March 29^th when the import/export parameters change drastically and the need to attract foreign business to help grow the country’s economy more important than ever.

Which leads us to BrewDog’s proposal, something …which not unlike the US tax cut last year is targeted at mid-sized to smaller breweries, but smartly emphasizes job creation as part of the plan..

This from BrewDog’s persuasive manifesto…which in many ways is a very traditional, pro-private sector approach…

We strongly believe that the best social policy ever created is a well-paying job…and that our very, very best companies are better placed than the government to create jobs and drive the future growth of our economy.

We believe that we can change how corporation tax works in the UK, to better incentivize economic growth, to lead to significantly more job creation and to increase the overall amount of tax which the government receives each year and well as stimulate more spending in our economy to boot.

And here comes the job creation part….

We would propose a new corporation tax system whereby any medium sized UK business (for these purposes medium is defined as having turnover in excess of £10m or employing more than 50 people) that either increases its turnover or headcount by 30% or more in a financial year, does not pay any corporation tax for that financial year, provided it undertakes to reinvest that tax rebate fully in further growth in the following 12 months and commits to a 24 month dividend embargo.

BrewDog’s proposal not only incentivizes businesses to grow and create jobs but also ensures that the incentive they receive is further reinvested to create more jobs and drive further growth.

But BrewDog’s proposal is also about creating an economic environment that enable Great Britain “to attract fantastic companies to locate in the UK, giving us an edge internationally as well as creating jobs. “

Smart stuff…Now if the UK’s politicians would only listen.

All image credits: BrewDog