Feeds

CBI calls for major overhaul to UK tax

Pre-Budget lobbying all round

The essential guide to IT transformation

The CBI today launched a scathing attack on the government’s corporation tax plans, claiming the economy will suffer if Chancellor Alistair Darling doesn’t radically overhaul the current system.

In a new report, UK business tax: A compelling case for change, the CBI argued that corporation tax should be cut to 18 per cent over the next eight years.

The Treasury will reduce the current 30 per cent rate by just two percentage points in April this year, but UK biz leaders reckon it needs to tackle the “ever rising business tax burden” by making a more daring cut.

The CBI warned that the current system could impact economic competitiveness with other countries.

Director general of the employers’ organisation Richard Lambert said: “Globalisation is a serious challenge to the tax system – as companies become more mobile, differences in tax regimes across the world are starting to matter more than ever before.

“Threats firms make to move their headquarters away from the UK are in no way empty – the government ignores them at its peril.”

The report also called for small and medium-sized businesses (SMEs) to be exempt from rules that it argued should only be intended for multinationals. “A small firms’ corporation tax rate [should be] brought back rapidly to 18 per cent within three years and the SME investment allowances doubled to £100,00.”

However, the Trades Union Congress (TUC) today slammed the CBI’s report, describing it as a “tax dodgers’ charter”.

The TUC argued that if the CBI’s plans were given the go-ahead, ordinary people would suffer from tax hikes which in turn could lead to spending cuts on public services.

TUC general secretary Brendan Barber added that plans to end what he described as "favourable tax rates for small businesses", could also lead to a backlash. "The CBI might as well hang a giant 'tax is for the little people' banner from its office windows," he said. ®

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
BBC: We're going to slip CODING into kids' TV
Pureed-carrot-in-ice cream C++ surprise
Twitter: La la la, we have not heard of any NUDE JLaw, Upton SELFIES
If there are any on our site it is not our fault as we are not a PUBLISHER
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.