Tuesday newspaper round-up: Brexit, landowners, Uber, online VAT,
Theresa May claimed that a no-deal Brexit “wouldn’t be the end of the world” as she sought to downplay a controversial warning made by Philip Hammond last week that it would cost £80bn in extra borrowing and inhibit long-term economic growth. The prime minister conceded that crashing out of the European Union without a deal “wouldn’t be a walk in the park” but went on to argue that the UK could make an economic success of the unprecedented situation if it proved impossible to negotiate a satisfactory divorce. – Guardian
Britain should limit the windfall gains of landowners by freezing the value of plots newly designated for housing, according to a thinktank urging sweeping reforms to tackle a national shortage of affordable homes. Calling on the government to pursue land market reforms similar to the German model, the Institute for Public Policy Research said planning authorities should be given new powers to zone land for development and freeze its price. – Guardian
Toyota is set to invest $500m (£388m) in Uber in a major bet on the future of driverless cars, it announced on Monday night. The funding from the Japanese carmaking giant, which values Uber at more than $70bn, will see the two companies work together on autonomous vehicles. It marks a significant show of faith in the US transport app, whose driverless car division has been beset by problems in recent months. – Telegraph
"Brexit is insignificant. I’m not concerned at all. What’s important is that we ramp up manufacturing in this country, encourage more people to buy British goods, and keep money within our economy rather than boosting the coffers of China or Poland.” John Elliott is the outspoken, Brexit-backing multi-millionaire businessman who in 1974 founded Ebac, a manufacturer in County Durham best known for its dehumidifiers and water coolers, and most recently washing machines. These were launched in 2016, making it the first time in almost a decade that a domestic washing machine rolled off a British production line. – Telegraph
Partners at one of the world’s largest accountancy firms are set for their biggest payday in nearly a decade in a move that could give more ammunition to critics of the four big audit firms. The 702 equity partners of Deloitte will receive an average payout of £832,000 for the latest financial year, a rise of 0.6 per cent year-on-year, their biggest in nine years. Last year they received an average of £865,000, but the figure was calculated using distributable profits before payment of corporation tax. This year the firm switched to a post-tax basis. – The Times
VAT laws should be reformed to create a two-tier system for online and physical retailers in an attempt to save the country’s dying high streets. As calls grow for an “Amazon tax” on online retailers, one of Britain’s largest property consultancies has argued that an overhaul of the VAT regime would be a more effective way of saving shops. Colliers International suggests that charging 15 per cent sales tax for purchases in stores and 22.5 per cent VAT for online transactions would help to level the playing field. – The Times