Plaid Cymru proposes corporation tax cut
Welsh political party Plaid Cymru is set to propose drastic cuts in corporation tax to address the region's poor economic performance, stimulate start-ups and encourage business relocations.
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The party wants Welsh-based businesses to pay a 12.5% corporation tax rate, but has no plans to lobby for cuts to income tax.
Plaid will present its proposal to the Cardiff-based Richard Commission, which was appointed by the government to look at greater power for the assembly and the potential for economic growth in Wales.
Adam Price, Plaid’s treasury spokesman in Westminster, explained the idea came from tax relief decisions in Ireland and Sweden, which have been successful in attracting corporate investments.
‘Ireland has a 12.5% rate. It is only 16 miles away from us – if we want to compete we have to have the same level of corporation tax,’ Price argued. He believes the Richard Commission is likely to embrace the idea and that the Treasury will be ‘sympathetic’ to its plea.
But the move by Plaid is likely to put Welsh Labour politicians on the defensive in the run up to next May’s elections to the national assembly. Labour now holds 28 of the 60 assembly seat compared to Plaid’s 17.