Daily Mail

Top bosses give their verdict on corporatio­n tax increase

- By John-Paul Ford Rojas Senior Business Reporter

BoSSeS from small start-ups to FTSe 100 giants have been pleading with the Chancellor to give Uk business the tax environmen­t it needs to spur investment and growth.

many say that the planned increase in the corporatio­n tax rate from 19 per cent to 25 per cent next month is the last thing they need as they weather surging inflation and rising interest rates – and try to help Britain emerge from an economic downturn.

James Dyson, entreprene­ur, said: ‘The Government has done nothing but pile tax upon tax on to British companies... Is it any wonder that the economy is teetering on recession?’

Archie Norman, chairman, marks and Spencer said: ‘Corporatio­n tax is the banner headline tax and sends a strong signal so it matters, but the total tax climate is what really matters.

‘The Uk needs a clear, long-term, nailed-on supply side strategy.’

Pascal Soriot, chief executive, Astrazenec­a (which decided to build a £320million plant in Ireland because of its lower tax rate): ‘[The Uk needs] a lower corporate tax rate and unfortunat­ely it’s going up.’

Lord Bilimoria, founder, Cobra Beer, and deputy president, Confederat­ion of British Industry: ‘ This is not the time to put up taxes. Businesses have suffered so much... They’ve had three years of pandemic followed by the Ukraine war, the energy crisis, cost of living crisis, inflation and, on top of that, you’re increasing taxes.’

Carolyn mcCall, chief executive, ITV: ‘Any increase in corporatio­n tax is not welcome for business.’

Charles Woodburn, chief executive, BAe Systems: ‘We’re obviously keen to always make sure that we impress upon Government... the importance of creating a strong investment environmen­t for a Uk business such as ours.’

Panos kakoullis, chief financial officer, rolls-royce: ‘It’s important for any government to have the right tax policy that encourages investment.’

A report from BT said Britain will head in a ‘drasticall­y anti-investment direction’ if the tax hike goes ahead.

Chief financial officer Simon Lowth said: ‘The case for interventi­on at the Budget has never been clearer.’

Tim martin, chairman and founder, JD Wetherspoo­n: ‘You need corporatio­n tax rates that encourage internatio­nal companies to invest and which give a business-friendly vibe to overseas entreprene­urs... maybe we can’t match the republic of Ireland, but we should aim to be close.’

Louise Hellem, director of economic policy, Confederat­ion of British Industry: ‘We’re concerned about the sixpoint increase to headline corporatio­n tax coming in April... there’s currently nothing on offer to offset it.’

kitty Ussher, chief economist, Institute of Directors: ‘our focus for the budget is to use the tax system to sharpen pre-profit investment incentives to raise long-term economic growth in Britain that benefits businesses and those they employ, regardless of their level of profitabil­ity.’

Alex Veitch, director of policy at the British Chambers of Commerce: ‘We do not want to see any further increase in the tax burden for businesses when they are facing a wall of rising costs.’

Barry o’Dwyer, chief executive, royal London: ‘All of us have an interest in the Uk remaining competitiv­e.’

mark Boggett, chief executive, Seraphim Space: ‘The Uk needs to be finding ways to keep its homegrown best tech companies at home – massive hikes on corporatio­n tax take us firmly in the wrong direction.’

Charlie mullins, founder, Pimlico Plumbers: ‘Scrapping the massive hike is a huge tool that will help, especially small businesses... Confidence is low and many are on their knees.’

Dominic Ashley-Timms, chief executive of management coaching firm Notion: ‘ Lower corporatio­n taxes would give businesses the capacity to invest more in technology, research and developmen­t, employ more people and invest in their learning.’

kate Vacovec, chief finance officer, Pizza Hut Uk & europe: ‘ensuring a competitiv­e rate of corporatio­n tax... will allow us to better balance multiple cost pressures.’

‘Businesses are on their knees’

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