Tories confirm corporation tax cuts

News Article - 08 March 2010
Category: Business

Shadow chancellor George Osborne recently confirmed the Tories would cut corporation tax by 3% should the party win the General Election in May of this year. The cuts were unveiled at the party's Spring conference in Brighton, along with other pledges designed to benefit corporations and ensure the Conservatives attract broad support in the run up to the election.

In addition to tax cuts, the Tories' first budget will contain funded measures to create jobs and boost new enterprise, and will scrap the tax on new jobs created in new firms. A simplified tax code will benefit smaller companies, which the Conservatives say will also make setting up a business far easier.

Despite a narrowing opinion poll lead, the Conservatives are expected to win the General Election this year. However, many of Mr Osborne's comments are considered controversial by senior Conservative aides and may put off some business owners who stand to lose valuable benefits. The corporation tax cuts would likely be funded by a reduction in business tax exemptions in addition to abolishing the practice of companies off-setting specific losses against tax bills from elsewhere in the company.

Even if the Conservatives fail to win the election, Labour and the Liberal Democrats will attempt to align themselves with businesses with similar proposals. With the budget deficit also in need of rectifying, the new government is likely to look to businesses to help fund finance gaps. The business environment is therefore likely to change heavily following the general election. Companies must have the capacity to drive behavioural change to ensure operations remain profitable.

All businesses should look to strengthen infrastructure in advance so that resources do not get overwhelmed by any legislation changes introduced. Access business software is regularly updated to reflect changes in legislation, regulations and 'best practice' to ensure clients are fully compliant at all times.

For more information on how business software can form part of a robust corporate infrastructure, please call Access on 0845 345 3300.

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