Chancellor rebuffs demands for cut to corporation tax

A scheduled rise in Corporation Tax in the autumn Budget will go ahead, the Chancellor has said, resisting a call from Tory backbenchers and reportedly Boris Johnson too for the increase to be scrapped. The levy is set to rise from 19% to 25% next year. But Rishi Sunak is looking to use some of the money raised to create a major new tax incentive to drive investment into the UK. Meanwhile, Jacob Rees-Mogg has said cutting taxes immediately may reduce inflation. The Brexit Opportunities Minister cited President Reagan’s move to cut taxes in a high interest rate environment in order to bring public expenditure under control – because it was unaffordable. The increased tax take and boost to the economy the tax cuts brought soon meant the budget deficit in the US got under control, Rees-Mogg explained.

The Daily Telegraph

Related Post

Reeves urged to abolish the £175,000 residence nil-rate band The Chancellor is facing pressure to eliminate the £175,000 residence nil-rate band in her upcoming Budget. Rachel Reeves previously argued that this allowance, which costs around £2bn annually, primarily benefits the wealthy and now the Resolution Foundation is pushing her to scrap it. In 2011, she stated: “Raising the inheritance tax limit to £1m for […] By Lisa Brownlow, 18 September 2024
Read Now
Small firms responsible for 80% of tax evasion Analysis by the National Audit Office (NAO) shows that small firms are responsible for more than 80% of tax evasion. The report cites HMRC estimates that £5.5bn was lost to deliberate tax evasion in the 2022/23 financial year, with small businesses responsible for 81% of the total. Despite a reduction in the overall tax gap […] By Lisa Brownlow, 16 September 2024
Read Now
Threshold freeze creates 4.4m more taxpayers The number of people paying income tax has increased by 4.4m in three years due to the freeze on thresholds, according to HMRC data. The figures also show that the decision to freeze the personal threshold at £12,570 has pulled an additional 1.77m pensioners into the income tax bracket. There are currently an estimated 37.4m […] By Lisa Brownlow, 3 July 2024
Read Now
↑