Tax crucial to election as Brown and Cameron woo business
Tax is the key election battleground as Gordon Brown and David Cameron attempt to convince the City of their commitment to business
Labour and the Conservatives face off this week as Gordon Brown and David
Cameron unveil their initiatives to boost competitiveness in the economy, with
tax set to be a key battleground.
On Wednesday Brown will hold a meeting with leading City figures in which he
will pledge to protect economic competitiveness and sooth fears that higher
taxes could drive companies out of Britain, the FT
reports.
Brown is likely to respond to concerns raised by giant businesses, such as
HSBC, that the UK system is becoming less competitive.
Cameron will release a report from the Conservative’s Tax Review Commission
on Thursday. The report is expected to demonstrate how the UK tax system can be
simplified and modernised.
According to the FT the Commission, led by former Tory minister Lord
Forsyth, will recommend tax cuts totalling £20bn. Reducing corporation tax from
30% to 25% will be one of the Commission’s main proposals.