FD Capital, a front-runner in financial recruitment within the UK, is advocating for a reduction in both personal and corporate taxes in the upcoming March budget, voicing opposition to the recent hikes in Corporation tax. The agency is pressing the government to promptly revert to a 19% corporation tax, or lower, to prevent further detriment to the nation’s economic future.
The firm suggests that the government could lower corporation tax to 19% in the March 2023 budget by curtailing government expenditure and downsizing the civil service, strategies the government has already hinted at before this year’s general election.
Corporation tax is identified as the tax most detrimental to economic health, often leaving employees and the general populace to shoulder its impact. Reducing corporation tax is seen as a boon for all economic facets, enhancing salaries and attracting new international investments.
The government had previously reduced corporation tax from 28% to 20%, and then to 19% in 2018. Rishi Sunak, in his capacity as chancellor at the time, declared an increase to 25% from April 2023, attributing it to pandemic-related government revenue losses. Liz Truss, during her brief tenure, suggested scrapping this increase. The hike was executed in 2023 by Jeremy Hunt, serving as Chancellor under Rishi Sunak.
Contrary to the belief that corporations primarily suffer from higher corporation tax rates, recent studies indicate that the adverse effects are distributed between business owners and lower-income employees.
For the UK to thrive post-Brexit, it’s crucial to establish itself as a prime business locale globally. However, its corporation tax rate lacks competitiveness, especially compared to the Republic of Ireland’s 12.5% rate, which is notably lower just across the Irish Sea.
The proposition to lower corporation tax to 19%, funded by trimming the civil service to numbers seen before the pandemic and Brexit, is seen by FD Capital as a pathway to revitalising the UK economy, enhancing global competitiveness, and fostering economic growth through heightened business assurance and new investments.
For further insights into FD Capital and its economic and recruitment analyses, visit at https://www.fdcapital.co.uk
