Tax policy hurting Britain

Tax policies are holding back Britain A report by the Centre for Policy Studies indicates that further tax hikes will drive the UK even further down the tax competitiveness table. The UK is ranked 22nd out of 37 OECD nations in the International Tax Competitiveness Index, but the CPS warns we will fall to 30th in 2023 after corporation tax jumps from 19% to 25% and the introduction of the new health and social care levy. Tom Clougherty, head of tax at the think tank, said: “The Government needs to rethink its plans, and put growth, investment and competitiveness at the heart of its agenda.” Meanwhile, Daniel Bunn of the Tax Foundation said, “the levelling up agenda could be curtailed by tax hikes” and CBI director general Tony Danker asked whether, with the tax burden in the UK heading to its highest sustained level in peacetime, Britain was “going for growth or back to tax and spend”. Danker added: “There is a fundamental inconsistency where the Government wants to unlock business investment, but its tax policies do the opposite. Tax growth stunts investment.”