Labour pledges to scrap corporation tax cut

The Labour Party will reverse Conservative plans to cut corporation tax in 2015 if it wins the next general election.

During his party conference speech today in Brighton, Labour leader Ed Miliband will pledge to cancel a cut from 21% to 20% and offer an £800m business rates tax break to smaller companies.

Miliband will say...

Continued...

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Comments
jon_griffey's picture

Tax cuts for the rich    3 thanks

jon_griffey | | Permalink

 

"....he wants growth in the UK economy to benefit hard-working families including small business owners and not just the privileged few".

Just as long as those 'small business owners' don't have the effrontery to work too hard and go on to get 'rich' (apparantly >£60K income) or they will be penalised.

Well at the moment the high    2 thanks

0098087 | | Permalink

Well at the moment the high street is dying. In Braintree the council is doing nothing to help. Someone has to do something..We have a situation at the moment where help is being targetted in govt marginal seats, and not fairly. Here we have a govt safe seat and we get nothing. 

jon_griffey's picture

High Street decline

jon_griffey | | Permalink

 

A cut/freeze in business rates would no doubt be welcomed by the recipients but it is not suddenly going to revive the High Street.  We increasingly buy everything online these days so the resulting squeeze on margins and volumes makes many shops unviable.  Short of uninventing the Internet it is difficult to know what to do.

Optional tax    1 thanks

Dutchnick | | Permalink

 

I think that certainly for countries trading across borders that Corporation Tax is almost optional. We are involved with an online business throughout Europe and I frankly have been shocked with the advice received which comes down to your moral standpoint about where and how much tax to pay or if you want to pay any! We have clients in Ireland building and staffing offices as they benefit from competitive rate of CT and are creating jobs on the back of it. My answer is to scrap CT in total, every tax haven would close and the UK would benefit enormously, may be with a registration fee pro rata to company size. Regards Labours interest in small businesses, and with their attitude to business and wealth creation they undoubtedly will do their best to make businesses smaller’t hey have a track record!

 

 

 

Political tosh as usual

shoshana | | Permalink

I wonder when tax policy will cease to be a political tool and start being used as an economic tool.

All previous studies show that when the rate of a direct tax is reduced, the Government gets more overall tax take (for example, people are less inclined to evade/avoid it, foreign investors are attracted).

I am guessing that this transformation will occur shortly before hell freezes over....

End rant.

Malcolm

PATURNBULL's picture

Optional Tax

PATURNBULL | | Permalink

Dutchnick has hit the nail on the head, I strongly agree

carnmores's picture

its been the same for 50 years

carnmores | | Permalink

the culprits in no particular order ar banks , landlords and local authorites or was it ever thus - you can to degree ameloriate the first 2 but rates are local taxation  without representation

Re the highstreet    1 thanks

ireallyshouldkn... | | Permalink

I don't think its actually that hard. 

Recession or no recession, business rates or no business rates, shops sell stuff.

You no longer have to go to shops to buy stuff.

Until that fundamental change in the world of retail finally sinks in within town halls, planners, and landlords, the highstreet as it is will continue to 'fail'.

To me it simple, shops need to close where the rent is higher for residential for the same properties.  The market is already pushing this, but would help if towns just rezoned some areas to push it along rather than clinging on to hope it will magically all come good again. This may mean whole streets of dead beat shops in some towns get zoned out.  (Rents for resi trend down towards a town centre, peaking just outside, retail peaks in the middle, but in a mixed zone they are both poor). The remaining and possibly re-zoned shops need lower rents and much lower rates. Shops are no longer cash cows for local gov*

Result, a much smaller, less straggly high-street, mainly with 'things you cant buy well on the internet'  Ie foodstuffs, bulky items, clothes, and small value items.

Trying to continually 'turn back the clock' as if the internet didnt happen is foolhardy beyond belief and seems to rely on just "outdoing" the next town but is doomed in the longer term.

 

*Local gov are also appalling at collecting biz rates for new sites.  How many clients do you have with dedicated offices in rural or even suburban locations that pay not a penny? I have an armful. Councils don't seem to put any effort into finding these locations. If councils don't ask and clients don't tell, the result is simple - declining based of collection.  

/Rant