Business issues

Tax

The UK needs a competitive tax regime if it is to prosper in an increasingly globalised economy

The CBI has genuine influence on government tax policy. As the Financial Times reported in March, following the 2013 Budget speech:

"A corporation tax cut to 20 per cent in 2015 was more obviously positive for business. One wonders sometimes whether Mr Osborne is a double agent for the CBI, loyal to shadowy controllers at the Centrepoint Lubyanka.

"Total UK business taxes were never worse than mid-table under Labour but the employer’s body always emphasised the shaming headline rate. The chancellor has obligingly reduced this to the lowest level among big developed economies."

Tax touches on almost every aspect of business and has a major impact on decisions and behaviour. So the tax regime must be kept under continuous review and reformed strategically to enhance the UK's competitiveness.

12 misunderstood corporation tax concepts >>

In today's world of global markets, companies have many more choices to make about where to invest their capital and their talent than they did in the past. Business tax is one of the most important - and easily measured - considerations that firms have to take into account. Key principles of a reformed, competitive tax system should be simplicity, certainty, flexibility and neutrality.