Daily Mail

Self-harming tax rise shames the Chancellor


During the Tory leadership race in the summer, one candidate proposed a radical plan to turbocharg­e the economy: Slash corporatio­n tax to 15 per cent.

‘We need to start up Britain,’ he said. ‘That means sending a signal that we’re going to be the most pro-business economy in the Western world.’

So what happened to this enthusiast­ic champion of enterprise? Well, Jeremy Hunt is now Chancellor – and he’s had a profoundly depressing change of heart.

Instead of encouragin­g businesses to thrive, he is punishing them by hiking corporatio­n tax from 19 to 25 per cent from April 1. Just as Britain desperatel­y needs a growth spurt to thrust itself out of the economic doldrums, punishing companies this way is simply short-sighted.

As Lord Bilimoria, vice president of the Confederat­ion of British Industry, rightly says: ‘How much more can business take?’

This paper understand­s Mr Hunt’s desire to reduce debt and repair our creaking public finances. But businesses will simply abandon high- tax Britain, which will threaten jobs and reduce tax receipts.

How shameful and self-harming that a Conservati­ve government is happy to tax the most productive parts of the economy until the pips squeak.

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