David Cameron, leader of the
has indicated that he will scrap corporation tax if his party wins the next
election, but added that he would fund the move by abolishing a range of reliefs
and exemptions for business.
Cameron’s comments followed the release of a 200-page report by the
Conservatives’ Tax Reform Commission. The Commission, led by Lord Forsyth,
argued that corporation tax should be cut from 30% to 25%. The Tories would make
up for the loss of revenue by scrapping R&D tax credits and film tax
credits, and broadening the tax base.
At Forum for Private Business event in London, Cameron said removing
exemptions and broadening the tax base would simplify the tax system and reduce
headline rates, the FT reports.
Economic secretary to the Treasury, Ed Balls, however, said the report by the
Tories listed £21bn of tax cuts that were unaffordable and would blow a whole in
the public finances.
Cameron’s comments came on the same day that chancellor Gordon Brown hosted a
number of high-level business leaders, including HSBC chief executive Mike
Geohegan and London Stock Exchange
chairman Chris Gibson-Smith.
Brown used the meeting to underline his commitment to promoting the Square
Mile as a major financial centre.
Does Darwin's theory apply to taxation? Colin ponders...
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