Labour plans to scrap corporation tax cut

LABOUR is to announce it would reverse the Conservatives’ plans to cut corporation tax in 2015, if it wins the next election.

The Conservatives intend to cut the headline corporate tax rate to 20% – currently 21% – but Labour party leader Ed Miliband (pictured) will pledge to cancel the move at a speech today in Brighton.

“One of the first acts of a new Labour government will be to use all the money that David Cameron wants to spend helping 80,000 big businesses to cut business rates for 1.5 million shops, pubs, workshops and hi-tech firms,” he will say.

The decision would fund the reversal of a scheduled rise in the rates businesses have to pay on commercial properties, the party claims.

The Conservatives’ programme of tax cuts and tax reliefs are designed to stimulate commerce, innovation and entrepreneurialism, although there has been a tension between the policy and fight against contrived tax avoidance.

Related reading

tax dictionary