Sunak could help firms buying British

BUSINESSES who invest by buying products or services from other British firms could receive tax breaks under new plans.

Some in government are pushing for the idea as a way to get UK businesses back on their feet after Covid and the fuel crisis.

One source told the Daily Mail: ‘Tax breaks are being looked at for companies that invest.

‘But also, one thing being considered is tax breaks for firms that buy British. We want to boost business here at home.

‘It is not for certain. But it is being talked about.’

Another source said that while the idea was being considered, there could be problems around World Trade Organisation rules.

Chancellor Rishi Sunak has tried a number of incentives to boost investment in the wake of the Covid pandemic.

One idea was the ‘super deduction’ allowance, which offers 130 per cent relief on purchases of equipment.

But analysis for the Financial Times found this has had negligible impact.