CBI responds to Labour business tax plans

Rain Newton-Smith, Chief Executive, CBI said

Now more than ever, businesses need confidence to invest. This demands a tax system that is competitive, proportionate and enables both long-term planning and sustainable funding for our public services.

Labour’s commitment to adopt the CBI’s recommendation for a business tax roadmap is the right kind of big choice and bold move that can give businesses the certainty they need to invest over the years and decades to come.

To get business investment firing on all cylinders we need holistic, long-term reform of the entire tax landscape to unlock its true potential and the UK’s competitive edge. Labour’s commitment to maintain incentives that drive investment and growth – like full expensing, the annual investment allowance, R&D tax credits and the patent box can do just that. Giving certainty that the headline corporation tax rate will not rise will also give businesses clarity and ensure the UK remains competitive.

Plans to address imbalances in the business rates system and improving administration will also remove barriers to investment, whilst delivering on the CBI’s proposals for coherent digitisation of the tax system will bring the UK business tax system into the 21^st century.