THE LAST SIX YEARS offer “no hope” for the future, said John McDonnell in response to chancellor Philip Hammond’s Autumn Statement.
The shadow chancellor of the Exchequer flagged up key areas in which the Coalition and Conservative governments have failed; including business investment, debt targets and welfare.
“There will be more tax debt and borrowing which shows that the plan has failed. We face Brexit unprepared.” John McDonnell said.
“It is not headline tax rates that encourage business investments long-term, but the support from school workers, world class infrastructure and major markets.”
The tariff for the single market, and HMRC resources being cut 40% since 2000 are serious issues, as well as the betrayal of the JAMS (Just About Managing households). McDonnell added that the public services are “just not managing”.
Infrastructure investment plans were a “promise to deliver what had previously failed”. He highlighted the expectations for change, rather than further cuts to earnings, which shows “no vision” for future prosperity.
McDonnell concluded: “The plan to reset economic policy has been betrayed. A hard surplus target lacks flexibility to adapt to the changing economic circumstances. We are unprepared and ill-equipped to meet the challenges of Brexit and have a secure economy.”
Hammond had earlier outlined more robust investment plans than his predecessor George Osborne.
The ATT had previously expressed concern that the legislation was overly complex and created unnecessary complications within the practical working of the new allowances
Introduced in 2013 to encourage R&D investment, the scheme allows UK businesses to pay only 10% corporation tax on profits derived from any UK or certain EU patents
Yet, KPMG’s annual survey shows that the UK is still an attractive place to do business, despite falling in rankings in tax competitiveness and FDI appeal
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