Liz Truss Calls for Reduced Corporation Tax to Boost UK Business

Big business is the lifeblood of many thriving economies, and the UK is no exception. But what role does corporation tax play in this? Recently, the former Prime Minister, Liz Truss, made headlines with her take on the matter.

Liz Truss’s Tax Stance

Liz Truss, a significant player in the UK’s political landscape, has recently advocated for the reduction of corporation tax to below 19%. The main idea behind her statement? Making the UK a more desirable hub for substantial business operations.

Truss expressed concerns over the current rate, standing at 25%, which she feels might be off-putting for potential businesses. She said, “We want to attract big businesses and we’re now having to give businesses subsidies to come to Britain, whether it’s Tata [Steel] or other companies, because the level of taxes are too high. So we need to reduce the level of corporation tax.”

Past Promises and Present Reality

While serving in No10, Ms. Truss had expressed her commitment to preventing tax hikes. She had initially opposed the former chancellor Rishi Sunak’s intent to increase the tax from 19% to 25%. However, when faced with market uncertainties following her mini-Budget, she made a surprising U-turn.

Later, when Sunak himself ascended to the role of Prime Minister, he implemented the previously proposed tax increase, resulting in the current 25% rate.

Making Britain Competitive Again

In her discussion with the Telegraph’s Planet Normal podcast, Truss reiterated her belief in the UK’s potential as a business hub. She emphasised the need for not just attractive tax rates, but also a streamlined planning system.

“We need to make our planning system much easier,” she argued, highlighting the slow processes that currently bog down prospective businesses.

Comparing the UK with other countries, she pointed out the hassle for companies looking to establish new factories. She argued that if a business had to choose between waiting two years in the UK and getting started immediately elsewhere, the latter would always be more appealing.

Reflecting on her Tenure

Ms. Truss’s time as Prime Minister, albeit brief, was certainly eventful. After her tax cut proposals, the UK saw the pound’s value drop dramatically, prompting the Bank of England to intervene.

However, in her conversation with Planet Normal, she defended her decisions, suggesting that her mini-Budget was unfairly blamed for issues that had been developing for a while. She refuted claims that her leadership led to an economic downturn, stating that many of the negative economic signs were not “unique” to her term.

Concluding Thoughts

Taxation, especially when it concerns big businesses, is always a matter of heated debate. The balance between attracting business and ensuring fiscal responsibility is delicate. Whether Ms. Truss’s suggestions will gain traction remains to be seen, but one thing is clear: the conversation about the UK’s economic future is far from over.