IoD comments, Chancellor misses an opportunity
Business leaders said they were disappointed that the Chancellor missed an opportunity to reduce corporation tax in today’s Budget. The Institute of Directors (IoD) regretted that the Chancellor chose to adjust a range of reliefs, schemes and exemptions, when a simple cut in the main rate of corporation tax would have been more beneficial. Britain’s rate of corporation tax is not as competitive as it needs to be.
Whilst welcoming the efficiency savings announced in the Budget, the IoD said it remains concerned that the Chancellor has done nothing significant to reverse the growth in tax and spend seen over recent years.
Miles Templeman, Director General of the IoD, said:
“The competitive advantages the UK once enjoyed with a 30% rate of corporation tax have been eroded away. We need to reduce the rate of corporation tax in order to boost our competitiveness.”
Laura Wolfe, Regional Director of the IoD in the North West, said:
“We are disappointed in the North West by the absence of major announcements on reducing administrative burdens on business. This had been billed as a likely centrepiece of the 2006 Budget, but progress on measuring the burdens and then setting targets for their reduction appears to have been delayed. Business urgently needs practical action to tackle over-regulation.”
The IoD said it welcomed the extension of free Further Education up to the age of 25. On the commitment to increase expenditure on schools, the crucial issue is that money is spent efficiently. Despite the big increases in expenditure over the last few years, far too many school leavers still fail to get good GCSE results and a fifth of schools lack a permanent head teacher.
The IoD said it welcomed the reduction of 5 per cent in real terms the reduction in expenditure of four key Government departments – HMRC, HM Treasury, DWP and the Cabinet Office.
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Contact Points: Jane Harrad-Roberts – North West IoD Press Officer Mobile and out of hours: 07785 395705 Email: jane@marketingprojects.co.uk
Laura Wolfe – Regional Director, IoD North West Tel.: 0161 209 3152 Email. laura.wolfe@iod.com
Notes to editors
The Institute of Directors is a non-political independent organisation with 55,000 members. In addition to its wide range of business services, the IoD provides an effective voice to represent the interests of its members to government and key opinion-formers. It also brings the experience of business leaders to bear on the conduct of public affairs. More information at www.iod.com/northwest
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