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Centre for Policy Studies disagrees: Robot Tax

Head of economic research at the Centre for Policy Studies (free-market British think tank)

Going ahead with a robot tax or other measures that would discourage investment in capital would be hugely damaging for the UK. The UK already suffers from a low capital-labour ratio, which is dampening productivity growth and holding back wage increases. Corbyn's plans would exacerbate this problem and simply encourage new technologies and economic activity to locate elsewhere. The result would be fewer well-paid jobs, lower wage growth and a reduced tax base to pay for public services. There is, of course, potential for automation to lead to growing income inequality in the future – although it is notable that this has yet to occur in the UK. The best way to counter this, however, is not by hampering economic progress, but by reforming skills and training.


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