Jeremy Hunt’s tax raid is “drastically anti-investment”, British Telecoms has warned. Ahead of a planned increase in the corporation tax rate in April from 19 percent to 25 percent, the telecoms giant warned Britain is heading towards a “cliff edge deterioration in the tax environment for investment”. BT’s chief financial officer, Simon Lowth, warned the UK is being “outpaced” by some of its international competitors.
Mr Hunt’s Autumn Statement took taxes to their highest level since World War 2.
He has vowed to press ahead with planned tax rises in April, despite the Treasury seeing a surprise surprise in January, receiving £5.4billion more in taxes than it spent on public services.
But the Chancellor sought to quell any hopes of tax cuts, saying there is not enough “headroom” to justify any changes to the Government’s approach.
This comes despite growing pressure from business groups and major corporations which have expressed concern that the UK’s plan to curb inflation will hold the economy back.
Simon Lowth, BT’s chief financial officer, said: “Productivity growth is stubbornly low and although not just a UK problem, does mean that some of our international competitors are starting to outpace us.
“Business investment has also been poor; a problem because it’s one of the key ways of helping the UK to break the cycle of low growth.”
Sir James Dyson last month criticised the Conservative party for what he described as a “short-sighted” and “stupid” approach.
Writing in the Telegraph, he said the Tories seem to think “penalising the private sector is a free win at the ballot box”.
He is attempting to demonstrate the party is “pro-trade, pro-business and pro-worker”, pitching itself as “the party of business”.
Meeting with ambassadors, diplomats and senior figures from global businesses at Labour’s International Trade Reception in January, Sir Keir said backing private enterprise is a “matter of conviction”.
He pledged to “transform” how the UK approaches business, saying: “It’s simple really – every business here has a strategy for growth, a nation needs one too.”
He added: “The Labour Party understands that backing private enterprise is the only way Britain pays its way in the world”, claiming that he had “united” the party behind the concept.
