Lord Digby Jones has called for the corporation tax rate to be cut to 10% to boost Britain’s economy. The former CBI chief said the Chancellor should make the cut as part of a push for globalisation. He said: “The UK is the most open major economy on the planet. We don’t do protectionism like the French or Americans. In this, Asia’s century, if there is one country that starts ahead of the game in the global stakes it’s ours.”
DND Law Tax News – Digby Jones Calls for 10% Corporation Tax
In a bold move that’s sparking significant debate, former Director-General of the CBI, Lord Digby Jones, has called for the UK to slash its corporation tax rate to 10%. Speaking at a recent business forum, Jones argued that such a reduction would invigorate the British economy, attract foreign investment, and stimulate business growth post-Brexit.
Currently, the UK’s corporation tax rate stands at 25%, having risen from 19% in April 2023. Jones believes this increase hampers economic competitiveness, particularly when compared to countries like Ireland, where the corporation tax rate is just 12.5%. According to Jones, lowering the tax rate would position the UK as a prime destination for multinational corporations, boosting job creation and fostering innovation.
Critics, however, are raising concerns about the potential consequences of such a drastic cut. Opponents argue that slashing corporation tax could lead to a significant reduction in public revenues, affecting essential services like healthcare and education. They suggest that instead of focusing solely on tax cuts, the government should prioritize a balanced approach that supports both businesses and public welfare.
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Supporters of Jones’s proposal counter that the long-term benefits of economic growth and increased business activity would offset any short-term revenue losses. They believe that a lower tax rate would encourage domestic companies to reinvest profits and reduce the appeal of tax havens, ultimately broadening the tax base.
As the debate continues, policymakers face a complex decision. Will cutting corporation tax to 10% be the catalyst for economic resurgence, or will it create more challenges than solutions? Businesses and taxpayers alike will be watching closely to see how this proposal unfolds in the coming months.
