Feeds

CBI calls for major overhaul to UK tax

Pre-Budget lobbying all round

Security for virtualized datacentres

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. ®

Security for virtualized datacentres

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.