1 00:00:00,440 --> 00:00:02,679 Speaker 1: UK corresponding Gavin Grays with us evening to you, Gevin 2 00:00:03,680 --> 00:00:06,400 Speaker 1: Hi there. So we were not expecting the UK economy 3 00:00:06,440 --> 00:00:08,400 Speaker 1: to flatline. We were expecting tiny bit of growth. 4 00:00:08,400 --> 00:00:13,200 Speaker 2: What happened, Yeah, big disappointment. Just announced within the last 5 00:00:13,240 --> 00:00:16,960 Speaker 2: hour that the UK economy just basically flatlined for the 6 00:00:17,000 --> 00:00:19,919 Speaker 2: second month in a row. Analysts have thought there'd be 7 00:00:19,960 --> 00:00:23,320 Speaker 2: a slight growth to GDP of zero point two percent. 8 00:00:24,160 --> 00:00:27,360 Speaker 2: So what went wrong. Well, we're being told there is 9 00:00:27,480 --> 00:00:31,440 Speaker 2: longer term strength in the services sector, so there should 10 00:00:31,480 --> 00:00:34,000 Speaker 2: be a growth over the last three months as a 11 00:00:34,000 --> 00:00:37,000 Speaker 2: whole and into the future. But it's other things that 12 00:00:37,040 --> 00:00:41,240 Speaker 2: have brought the figures down, so really honing down more 13 00:00:41,280 --> 00:00:45,000 Speaker 2: precisely on what they reckon. The growth was led by 14 00:00:45,159 --> 00:00:49,040 Speaker 2: computer programmers and the health sector, which recovered from strike 15 00:00:49,120 --> 00:00:53,640 Speaker 2: action back in June, but there were falls in advertising companies, 16 00:00:53,840 --> 00:00:59,040 Speaker 2: architects and engineers, with manufacturing crucially falling overall, with a 17 00:00:59,080 --> 00:01:04,240 Speaker 2: particularly poor month for car and machinery firms. Construction industry 18 00:01:04,280 --> 00:01:07,920 Speaker 2: also suffered badly. So yeah, the government going to look 19 00:01:07,920 --> 00:01:09,960 Speaker 2: at this. I'm going to think, well, you know, we're 20 00:01:10,000 --> 00:01:13,440 Speaker 2: still looking back at the previous administration of the previous government, 21 00:01:14,280 --> 00:01:17,360 Speaker 2: and indeed the UK did have the highest growth rate 22 00:01:17,400 --> 00:01:19,919 Speaker 2: for the first six months of twenty twenty four among 23 00:01:19,959 --> 00:01:22,880 Speaker 2: the group of G seven nations. But I think a 24 00:01:22,959 --> 00:01:26,200 Speaker 2: second line of flatlining will be of some concern to 25 00:01:26,280 --> 00:01:27,280 Speaker 2: those in government. 26 00:01:27,440 --> 00:01:30,880 Speaker 1: Devin, Listen, This Apple tech situation in Ireland is fascinating. 27 00:01:31,400 --> 00:01:33,759 Speaker 1: Am I reading this right? That Ireland actually doesn't want 28 00:01:33,760 --> 00:01:34,479 Speaker 1: the text money. 29 00:01:35,600 --> 00:01:38,080 Speaker 2: Yes, so this is quite a complex story and it 30 00:01:38,160 --> 00:01:43,160 Speaker 2: goes back over some eight or more years. But originally 31 00:01:43,959 --> 00:01:51,240 Speaker 2: when the company Apple headquartered its business for Europe, Middle 32 00:01:51,280 --> 00:01:55,560 Speaker 2: East and that sort of region, they decided to go 33 00:01:55,640 --> 00:01:59,480 Speaker 2: to Ireland for it. Why well, because Ireland was offering 34 00:01:59,640 --> 00:02:03,240 Speaker 2: massive tax discounts, and indeed it was said that that 35 00:02:03,360 --> 00:02:07,440 Speaker 2: had been a bigger incentive to lure big companies away 36 00:02:07,880 --> 00:02:10,799 Speaker 2: from countries like the UK and the rest of the EU. 37 00:02:10,919 --> 00:02:13,800 Speaker 2: And boy it worked. Suddenly Dublin was springing up with 38 00:02:13,880 --> 00:02:18,720 Speaker 2: a whole load of huge multinational companies headquartering their regional 39 00:02:18,919 --> 00:02:24,040 Speaker 2: offices in Dublin. But the Irish government gave these tax 40 00:02:24,080 --> 00:02:28,720 Speaker 2: advantages to Apple. The European top Court said it was illegal. 41 00:02:29,639 --> 00:02:32,160 Speaker 2: The Irish government said, well, we don't want the tax 42 00:02:32,240 --> 00:02:35,240 Speaker 2: back and we don't think it's illegal, but after all 43 00:02:35,240 --> 00:02:38,640 Speaker 2: the toing and throwing, Apple indeed had been ordered to 44 00:02:38,680 --> 00:02:42,440 Speaker 2: pay Ireland roughly twenty four billion New Zealand dollars in 45 00:02:42,560 --> 00:02:45,840 Speaker 2: unpaid taxes. The Irish government has said it will respect 46 00:02:45,840 --> 00:02:49,400 Speaker 2: the ruling. The ruling incident, it was because effectively no 47 00:02:49,600 --> 00:02:53,079 Speaker 2: other company was being given the tax advantages that Apple 48 00:02:53,120 --> 00:02:56,560 Speaker 2: were being given, so they said that was unfair. As 49 00:02:56,639 --> 00:02:58,840 Speaker 2: I said, though for the period of time it's taken 50 00:02:58,880 --> 00:03:03,000 Speaker 2: to discuss this, with the original decision covering the period 51 00:03:03,360 --> 00:03:07,440 Speaker 2: nineteen ninety one to twenty fourteen, then an appeal on it. 52 00:03:07,680 --> 00:03:09,680 Speaker 2: As you can imagine, plenty of others have tried to 53 00:03:09,680 --> 00:03:12,560 Speaker 2: take advantage of that particular scheme in Ireland. 54 00:03:12,680 --> 00:03:14,560 Speaker 1: It's good to talk to you, Gevin, as always, Thank 55 00:03:14,600 --> 00:03:16,639 Speaker 1: you so much. Devin Gray are UK correspondent. 56 00:03:17,320 --> 00:03:20,480 Speaker 2: For more from Hither Duplessy Allen Drive, listen live to 57 00:03:20,600 --> 00:03:23,640 Speaker 2: news talks it'd be from four pm weekdays, or follow 58 00:03:23,680 --> 00:03:25,440 Speaker 2: the podcast on iHeartRadio.