E&Y: Government too adversarial with business
Firm says UK becoming less attractive as investment destination
A new report by
Ernst & Young
has warned that the UK is in danger of becoming less competitive because of its
complex and uncertain tax regime
The firm said a key way to improve tax revenues would be if the government
and HM Revenue & Customs were less adversarial with business.
Britain Thrive’, it said Britain was becoming less attractive as an
investment destination, getting 18% of foreign projects in 2005, compared with
31% in 1997.
It also singled out the UK’s
corporate tax rate as cause for concern – it is now the 18th lowest out of
countries in the Organisation for Economic Cooperation and Development (OECD),
compared with the 10th lowest in 2000, it said.