The head of a CBI has called for a halt to new business taxes, in a speech to
an audience including the new chancellor.
The tax burden on businesses must not be increased, said the president of the
Confederation of British Industry (CBI), Helen Alexander, at its annual dinner
Alexander said: “More taxes on business shouldn’t even be considered. If we
want enterprise, jobs and growth – and we all know that we do – then more tax on
business will have the opposite effect, so this approach has to come off the
She said there were four key points to aid business: a sustainable path back
to fiscal health; a tax system that looks for growth and doesn’t “hit business”
; the right infrastructure and reform of public services and public sector
Alexander referred to Osborne during the speech.
“The main thing the economy needs is for the deficit to be sorted. We welcome
the creation of an independent office for Budget responsibility, and I know your
treasury team is already working flat out on an emergency budget. But I cannot
stress enough the importance of being bold.”
She said the relationship between government and business needed to be
positive and urged business not to beused as “political football”.
“Election-time attacks on wealth creators may go down well with some voters,
but they go down really badly with the very entrepreneurs who need to be firing
on all cylinders right now,” she said.
Alxeander is also chairman of Accountancy Age owners
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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