UK business gives thumbs down for European Monetary Union in report published in November

Citation

(2000), "UK business gives thumbs down for European Monetary Union in report published in November", European Business Review, Vol. 12 No. 2. https://doi.org/10.1108/ebr.2000.05412bab.014

UK business gives thumbs down for European Monetary Union in report published in November

UK business gives thumbs down for European Monetary Union in report published in November

Keywords: Taxation, EMU

In a survey commissioned by City law firm, Manches, 70 per cent of respondents believe that tax rates will increase if the UK joins the EMU. A further 49 per cent are convinced that unemployment will increase, nearly double the number who thought it would decrease.

Yet the results also show that 48 per cent of the poll agree that London's position as Europe's premier financial centre will be "seriously undermined" unless the UK joins the EMU. "Growing business sees a clear choice here", says Manches partner, Chris Owen. "Higher tax and unemployment or the loss of our status as Europe's financial capital".

Only 21 per cent of participating companies think that business growth will be greatly assisted by membership.

The survey was issued to 1,500 companies in the South East with a rumover between £10 million and £100 million. Its purpose was to investigate the attitude of growing business towards the EMU.

"It does not make comfortable reading for the government", says Chris Owen. "It shows scepticism, and even more confusion. In fact, only 22 per cent of our respondents believe that enough is being done to prepare them for the EMU."

The full Survey Report was published in November 1999 and covers a range of issues likely to affect growing business.