Britain has little room for business tax cuts, Dutch warn

Dutch Finance Minister and Eurogroup President Jeroen Dijsselbloem attends a euro zone finance ministers meeting in Brussels, Belgium, November 7, 2016. REUTERS/Yves Herman

AMSTERDAM (Reuters) - Britain’s budget deficit and high public debt levels will make it hard for the country to introduce business tax cuts to stem an exodus of corporations from the country after it leaves the European Union, the Dutch finance minister said on Tuesday.

Speaking on RTL television, Jeroen Dijsselbloem said that Dutch public finances were in better shape than Britain’s, with more room to make cuts in response if necessary. He warned the British against triggering a “race to the bottom”.

“The British have a high deficit and high public debt, unlike the Netherlands,” he said. “They’ve promised three times to cut taxes, including under the previous government, but I’ve never seen how they’re going to pay for it.”

Reporting By Thomas Escritt, editing by Toby Sterling