Reports call for taxation policy reform
Two separate reports published today have criticised the government's taxation policies â€" in very different ways.Whereas the Reform thinktank assesses the effect of taxation on improving society, accountancy firm Ernst & Young's corporate taxation report analyses the impact on Britain's competitiveness as an investment location.The latter claims that companies are likely to move their headquarters away from the UK because Britain's taxation regime has become inefficient, confusing and complex.It calls on the government to make clear future plans on taxation policy to prevent uncertainty from continuing to hinder Britain's competitiveness."While the latest figures show the UK is still a key investment location, it must be a concern to government that, particularly outside London, inward investment figures are declining," Ernst & Young's head of tax, Paul Davies, commented."Other countries and regions in Europe have stolen a march on the UK by offering fiscal incentives and tax breaks that are proving to be a great success."Meanwhile the Reform report argues that public spending increases have created "new and growing divides in society" which need remedying quickly.It says the young, middle-income earners and outlying regions have suffered especially under the New Labour tax regime, which it argues is driving up social inequalities rather than reducing them.In order to resolve this situation the government should act to tie public expenditure to economic growth â€" rather than continue raising already historically-high taxation levels."The Treasury has the right analysis of the challenges facing the UK but absolutely the wrong answers," states Professor Nick Bosanquet."Heavy public spending increases have already gone a long way to mortgaging the future of a generation who will have to pay for enlarged public spending as well as for their own pensions and higher education."
Share this..
Related stories
UK housing market is too focused
Hometrack, one of the U.K.'s leading property experts, has confirmed that in its opinion the average price of a home in the UK will fall in 2010. Aside from the fact that unemployment is on the increase, household incomes are under pressure and the economy has not yet left recession, the company believes the ongoing improvement in the property market is focused upon too small a number of buyers....
Read MoreWill UK consumers benefit from a recovery in the banking sector?
As we have covered over the last few days, the UK banking sector is set to report a strong return to profitability in the reporting season which begins this week. However, even though the headlines will quote the profitability over the last quarter and the last half year, there is still a long way to go before UK banks return to anywhere near their former financial strength. There is still an ongo...
Read MoreAlistair Darling and Gordon Brown at loggerheads again
It is reported Alistair Darling has had a number of furious disagreements with Gordon Brown regarding the UK budget deficit and how it should be tackled. It is believed Alistair Darling is in favour of directing income from short-term economic growth in the UK towards tackling the budget deficit, while Gordon Brown seems adamant that growing income should be directed towards investment in public s...
Read MoreHave UK consumers returned from the dead?
In a reflection of recent upbeat statements with regards to the UK economy it looks as UK consumers are about to return from the dead. A report by the Nationwide Building Society showed the index of consumer confidence increased from 54 in May to 58 in June with many consumers apparently more upbeat about the prospects for the UK economy in the short to medium term.
When you conside...
Car manufacturers make hay while the sun shines
The UK government has today announced that just under 155,000 cars have been acquired by UK motorists under the car scrappage scheme. This is the scheme which allows vehicles aged 10 years or over to be scrapped in exchange for a £2000 discount on a new vehicle. The idea is that by scrapping the less efficient vehicles and replacing them with more efficient vehicles there will be a significant im...
Read More