News Article - 19 March 2007
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More calls have been to lower the taxes of UK businesses to avoid Britain falling by the wayside in the competitiveness stakes.

The British Chambers of Commerce is lobbying for a cut in corporation tax from 30 per cent to the European Union 25 per cent average while the Institute of Directors wants to see a reduction to 28 per cent.

In addition, the Engineering Employers' Federation (EEF) has joined the calls, cautioning that the taxes are causing the country's competitiveness and manufacturing profits to suffer.

"The competitiveness of our tax system has become a growing issue for business and there is a danger of losing our attractiveness as a location for manufacturing at a time when other factors are loosening companies' ties with the UK," said Martin Temple, the EEF's director general.

According to the manufacturing trade body, companies will be paying nearly £12 billion more in 2008-09 compared with ten years previously when Labour was awarded the premiership.

The Telegraph recently reported that big businesses were also awaiting a consultation document regarding the way in which tax dividends from overseas investments are treated.

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