Lib Dems: Tory plans would hit manufacturing
Move to cut reliefs and lower corporation tax would benefit services sector, Lib Dems say
Tory plans to fund a cut in corporation tax by scrapping allowances would
damage the hard-pressed manufacturing industry while benefiting the financial
and services sectors, shadow Lib Dem
Chancellor Vincent Cable warned at a pre-Budget briefing.
Most of the allowances introduced by Chancellor Gordon Brown benefit the
manufacturers.
The Tories are proposing a 3p
cut, equivalent to around £4.5bn in tax.
Labour have claimed the cuts could only be paid for by reducing public
services.
Further Reading:
Tories
plan to cut corporation tax
UK tax competitiveness
reaches tipping point