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Developments in UK shipping: the tonnage tax

Author

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  • Mark Brownrigg
  • Geoff Dawe
  • Mike Mann
  • Phillip Weston

Abstract

The new UK Government, elected in May 1997, came to power with a commitment to reverse the decline of the UK shipping industry and enhance the employment prospects of UK seafarers. The Government commissioned Lord Alexander of Weedon to investigate the case for a tonnage tax. In this paper, the economic arguments for supporting the UK shipping industry are reviewed. There is some evidence that the UK holds a comparative advantage in world markets in key sectors of the shipping industry and on-shore maritime related activities, but is being undermined by lower foreign taxes. In the absence of government support, the UK shipping industry is likely to continue to decline, and, by further reducing the supply of qualified UK ex-seafarers, put at risk the successful on-shore activities. Various measures that might be used to support a national shipping industry, e.g. a tonnage tax, are considered. The paper concludes by discussing the likely impact of the tonnage tax on the UK's shipping industry.

Suggested Citation

  • Mark Brownrigg & Geoff Dawe & Mike Mann & Phillip Weston, 2001. "Developments in UK shipping: the tonnage tax," Maritime Policy & Management, Taylor & Francis Journals, vol. 28(3), pages 213-223, July.
    • Handle: RePEc:taf:marpmg:v:28:y:2001:i:3:p:213-223
    DOI: 10.1080/03088830110055701
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    Cited by:

    1. Brooks, Mary R. & Hodgson, J.Richard, 2004. "5. The Fiscal Treatment Of Shipping: A Canadian Perspective On Shipping Policy," Research in Transportation Economics, Elsevier, vol. 12(1), pages 143-171, January.
    2. Yang, Yi-Chih, 2014. "Effect of shipping aid policies on the competitive advantage of national flagged fleets: Comparison of Taiwan, Korea and Japan," Transport Policy, Elsevier, vol. 35(C), pages 1-9.
    3. Shi, Xin & Jiang, Haizhou & Li, Huan & Xu, Dong, 2020. "Maritime cluster research: Evolutionary classification and future development," Transportation Research Part A: Policy and Practice, Elsevier, vol. 133(C), pages 237-254.
    4. Olaf M. Merk, 2020. "Quantifying tax subsidies to shipping," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(4), pages 517-535, December.

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