[TR] Storm Warning - absolutely non political

[John Macartney]

Friends,



I'm sparing a thought for those of you who may still be working on your cars
and are looking for parts you may have to source out of the UK for whatever
reason.



For those of you who follow developments outside of the US and Canada, some
may be aware that in July of this year we had a change of government from
Conservative to Centre-Left Socialist. Whenever we have a socialist
administration in the UK since WW2, retail prices and indirect taxation
usually go through the roof and, true to form, this has happened again
following a revised budget announced in parliament less than two weeks ago.



In order to plug an alleged 'black hole' of GBP25billion to be recovered in
the next year, our Chancellor has stated that:



1.	The National Living wage will be increased by about 15%, and
2.	Employer contributions for National insurance (an employment tax for
state pensions and our state health costs) will increase at the top end from
13.8% to 15%, while the threshold for payment of this tax will go backwards
from GBP9,100 per employee down to GBP5,000. This is going to have a massive
impact on job security for lower paid people and is almost certainly going
to see a large number of people being let go from their current jobs and
find themselves once more on the jobs market.



Collectively, these two major changes are going to have a major impact on
selling prices across the board - not only for sales made to UK  customers,
but it will seriously impact on exports too. Consequently, it's highly
likely that UK parts suppliers will have to radically adjust their prices
UPWARDS from present levels. If that was not enough, no-one on this side of
the pond has the remotest idea of what these changes will have on the
Dollar/Pound exchange rate. The final 'whammy' is that President Elect Trump
has declared to European media on several occasions that in order to protect
US business interests, actions will be taken once he is in the White House
to levy a 20% import duty on all imports coming into the US from
non-American territories. So, if that does actually happen, the items you
may be presently or thinking about buying from the UK are going to cost you
rather more than previously and especially if the European postal
conglomerate also decide to hike the costs for international deliveries.
These usually also occur in the first three months after every New Year as
well!



I said in the subject line that this message is strictly non-political but I
thought that all of you who may be planning to buy bits for your Austin
Healey / Jaguar / MG / Sunbeam / Triumph or whatever, out of the UK, may
want to bring your purchase forwards before the White House changes
occupants? There's little that can be done on points 1 and 2 above as it's
already in force but as much of my earlier career was spent in trying to
sell parts to US importers in the past - and often banging my head on a
brick wall with frustration, I can see that issue raising its ugly head yet
again.



Ah well, what goes around usually comes around at later dates in a variety
of guises. Be assured, no-one has told me prices are going to increase but
the changes we're facing here on a number of fronts are going to mean that
in the near future, many things are likely to be a lot different - and by no
means an improvement on what went before.



Good luck



Jonmac









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