Sun, 17 Oct 2021

UK business group calls on government to lower taxes

Robert Besser
16 Sep 2021, 18:09 GMT+10

LONDON, England: The Confederation of British Industry (CBI) has urged the UK Chancellor of the Exchequer, Rishi Sunak, to stop raising taxes on businesses, and instead offer them more assistance to deal with the effects of Brexit, COVID-19 and climate change.

The Confederation also asked Sunak to "flip business taxation on its head" when he announces new tax proposals and a three-year spending plan on 27th October.

In a speech made on Monday, CBI Director-General Tony Danker said, "The lack of detail and pace from the government on some of the major economic choices we must make as a country are the biggest concerns for business."

Danker stressed Sunak should not increase property taxes on companies that invest in making their premises more carbon-efficient, adding more should be done to support training, develop new infrastructure and attract private investment.

Following Sunak's announcement of a corporation tax increase from 2023 to make up for his $485 billion spending during the COVID-19 pandemic, the CBI and other employer groups stressed, last week, that jobs will also be lost if the government increases social security contributions to fund social and healthcare.

Sunak and Prime Minister Boris Johnson will discuss investment plans with business leaders and institutional investors in October.

According to the Organisation for Economic Cooperation and Development, over the past 20 years the UK's level of productivity has been more than 20 percent lower than the United States, France and Germany, and it has also trailed its three rivals, in terms of annual business investment, since around 2000.

The two-year tax break Sunak implemented this year to encourage businesses investment will simply bring forward investment planned for later years and is limited in scope, Danker stressed.

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