CITYPERC Policy Report 2017/MAY A SINGAPORE ON THE THAMES? POST-BREXIT DEREGULATION IN THE UK City Political Economy Research Centre City, University of London
[email protected] @cityperc A SINGAPORE ON THE THAMES? POST-BREXIT DEREGULATION IN THE UK CITYPERC 12 May 2017 — CITYPERC POLICY REPORT 2017/MAY — Contents 1 Executive Summary 3 2 Introduction 5 ANASTASIA NESVETAILOVA City, University of London 3 Politics and the Fragile Alliance of the Brexit Vote 9 RONEN PALAN City, University of London 4 Financial Regulatory Arbitrage after Brexit: How Feasible? 14 STEFANO PAGLIARI City, University of London 5 The Failure of Financial Market Integration in the EU and the Looming Dominance of Wall Street 19 JOHN GRAHL University of Middlesex 6 How Might the UK be Turned into a Tax Haven? 22 RICHARD MURPHY City, University of London 7 Brexit as a Catalyst for Reinventing the Eurodollar Markets 26 IZABELLA KAMINSKA Financial Times 8 Singapore-on-the-Thames: Slogan or Strategy? 28 JOHN CHIRSTIANSEN Tax Justice Network 2 — CITYPERC POLICY REPORT 2017/MAY — Executive Summary • The so-called ‘Singapore on the Thames’ scenarios for post-Brexit UK tend to envisage a country that has abandoned the red tape of EU regulations, likely adopted a unilateral free trade approach and introduced a low taxation regime for the corporate sector. • Technically, it is possible to make Britain into a low corporate tax juris- diction. However, while the abolition of corporation tax would create an entirely tax-free environment for foreign shareholders in UK companies, this measure would end up increasing taxes on UK privately owned businesses.