Call for more robust UK taxation system

News Article - 10 March 2008
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The Confederation of British Industry (CBI) has issued a call to the government to overhaul the current system of business taxation in the UK to improve business performance.

According to the business group, introducing a system of tax cuts and reducing the headline rate of corporate tax from 28 per cent to 18 per cent over the next eight years could kickstart the economy, boosting revenues by as much as £15.6 billion a year and giving the country a more competitive edge.

The CBI Tax Task Force reports that ground gained with corporation tax cuts in the 1980s and 1990s has been lost and Britain needs to take action to ensure that its economy remains competitive.

Chancellor Alistair Darling is launching his 2008 Budget on March 12th and his speech will be closely watched to ascertain the changes it will make to accounting practices and business health.

The Conservative party has also joined calls for a cut in corporation tax, proposing a simplified rate of 25 per cent from the start of the new fiscal year in April and calling for an increase from 20 per cent to 22 per cent for small businesses to be scrapped.

Shadow chancellor George Osborne claims: "It will send a clear signal that Britain is open for business and it will be a real shot in the arm for British companies as they meet the challenge of competing in a global economy."

The Conservative party reports that the UK currently has the 19th lowest rate of corporate tax in the European Union and fresh cuts are needed in order to keep the country competitive.

Integrated accounts packages can help firms to keep accurate records and respond to changes in the taxation system.

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