Make UK comment on Corporation Tax announcement by the Prime Minister

Commenting on the announcement by the Prime Minister on Corporation Tax, Stephen Phipson, Chief Executive of Make UK, said:

“On its own, the short-term decision to increase Corporation Tax again sends the wrong signal to investors as to how attractive the UK is as a destination for foreign investment. However, there are far bigger issues at play than just a single decision on tax.  The UK urgently needs a long-term, credible economic and industrial strategy which includes a wide-ranging view of how we boost investment in the round. This must include a properly designed and targeted taxation system which reflects the real world investment decisions that companies make. We cannot go on zig zagging from one policy to the next.”

A Make UK/RSM survey on manufacturing investment to be published on Monday will include the following data:

• Two thirds of companies believe increasing the rate of Corporation Tax will make the UK less attractive to foreign investment
• Over half of companies (57%) say it will result in manufacturers investing less capital
• A third say an increase will wipe out the benefits of increased capital allowances