Former Chancellors argue against corporation tax hike

Three of his predecessors have warned Chancellor Jeremy Hunt that going ahead with a planned increase in corporation tax would be a mistake. Lord Hammond said he was “disappointed” with the upcoming increase from 19% to 25%, saying: “My view on corporation tax is always that it’s better to have lower than higher.” Meanwhile, Kwasi Kwarteng said the increase would not help the UK to become more competitive, arguing: “We have got to look at ways to improve our attractiveness to foreign investors.” Separately, George Osborne has urged Mr Hunt to cut business taxes in next month’s Budget to boost the economy. Elsewhere, the Federation of Small Businesses has said the increase to 25% would be disastrous for limited company directors, with spokesman Craig Beaumont saying: “People think corporation tax is only an issue for big businesses – but when we speak to our members and ask what they need help with, corporation tax is top of the list.” He added: “If you want the economy to bounce back, one way of not doing that is making it harder for small business owners.” Research by consultancy Europe Economics for the Taxpayers’ Alliance modelled the impact of the planned rise in corporation tax on growth, finding that it could result in a £30.2bn – or 0.9% – reduction in economic growth over 10 years.

Acer Accounts can assist you with your taxation, year-end accounts, self assessment, bookkeeping, accounting and payroll services – we are your tax advisor near you

 

The Sunday Telegraph

Related Post

Government will have to raise taxes to meet its fiscal targets The National Institute of Economic and Social Research (NIESR) has warned that the next government will have no spending room for tax giveaways and will have to find ways of generating revenues amid “sluggish” growth. It said that ministers will have to implement tax rises and delay net zero investment unless the government is willing […] By Lisa Brownlow, 16 May 2024
Read Now
IR35 rules fuel crisis in self-employment It has been suggested that HMRC’s battles with BBC stars over the controversial IR35 rules have contributed to a crisis in self-employment. A survey by the Association of Independent Professionals and the Self-Employed (IPSE) found that one in ten highly skilled freelancers is currently out of work due to the IR35 reforms. More than half […] By yinka developer, 10 April 2024
Read Now
Income tax hits £264bn under the Tories Analysis of HMRC data shows that income tax revenues have increased by more than 70% under successive Conservative administrations, hitting £264bn. Then-Chancellor Rishi Sunak froze a number of tax bands in 2021 and since the policy was enacted, income tax receipts have jumped by £49bn. Since 2010, when the Tories took power via a coalition […] By Lisa Brownlow, 10 January 2024
Read Now
↑