Tax cuts to boost UK economy: Business leaders desperate for government as Tory leadership battle begins
Business leaders yesterday urged Boris Johnson’s successor at 10 Downing Street to ease Britain’s heavy tax burden and rebuild the economy.
The CBI chief said the recovery should be the “number one focus” and Lord Billimoria, owner of Cobra Beer, said the companies “shouted leadership” and were focused on growth and investment.
However, some economists believe such stimulus could fan the flames of inflation and force the Bank of England to raise interest rates sharply.
Tax Petition: CBI chief says recovery should be ‘the number one focus’ and Lord Billimoria, owner of Cobra Beer, says companies ‘cry out leadership’
The turmoil in Westminster came as the government’s budget watchdog, the Office for Budget Responsibility, warned that the national debt could spiral out of control and more than triple in the next 50 years if ministers don’t hike taxes further. No or reduced expenses.
The prime minister said in his resignation speech that his successor should “do the same work to reduce the burden on businesses and families and, yes, lower taxes”.
However, since the 1940s, the policies of his former chancellor, Rishi Sunak, have raised corporate income tax from 19 percent to 25 percent, stabilized the income tax threshold, and increased social security, ie the total income tax burden. rise to the highest level.
Sunak’s successor, Nadim Zhawi, has raised the prospect of reversing the planned corporate tax hike for next April, saying: “Nothing is off the table.”
Billimoria told the BBC: “We need to lower taxes.
“We’ve had the highest tax burden in 70 years, that’s dead wrong right now – any time, let alone a time when businesses need help and consumers need help.
“Companies are crying out for leadership, for government focused on growth, for investment.”
Heavy burden: Rishi Sunaki, former Chancellor
Brexit advocate John Longworth, the former head of the UK Chamber of Commerce who now heads a network representing family businesses, said businesses were “extremely disappointed by the government’s lack of economic policy”.
He added: “They haven’t exploited Brexit at all. Where’s the regulation, where’s the tax deduction, where’s the cut in external tariffs that we can unilaterally do to lower the cost of living?’
CBI Director-General Tony Danker said: “We must quickly fill the policy gap to protect people’s living standards through measures for business confidence, investment and growth.
“The redevelopment of the economy should be the top priority for all politicians.” Alex Baldock, chief executive of electronics retailer Curry, said: “The consumer needs some help getting through the cost of living crisis.”
Paul Dales, chief UK economist at Capital Economics, said lawmakers must promise lower taxes to garner support for Johnson’s success.
This meant that a change in leadership “could result in fiscal easing and monetary tightening”.
Conservative MP and former minister David Davis said the next leader should halt corporate tax hikes, repeal the recent increase in Social Security, implement massive IR35 tax reforms to deal with the cost-of-living crisis and scrap VAT on fuel. Should be removed.
He also advocates the abolition of the income tax ceiling, which is pushing more and more people into the top tax bracket.
Davies argued that Britain’s high tax burden was “a major contributor” to its current economic crisis, dismissing the OBR’s argument, which he said ignored the fact that tax revenues from fostering growth would rise significantly.
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