UK Businesses Face Highest Tax Burden Since the 1940s: Hunt Plans to Cut It

According to recent findings, British firms are set to face their highest tax burden since the 1940s. Jeremy Hunt has recently emphasised his commitment to reducing taxes that are currently paid by companies. In his eyes, tax cuts for businesses should be prioritised above all else, the Daily Mail reports.

UK Firms and Their Increasing Tax Burden

This proposed policy direction has come from Hunt’s response to an alarming report brought to light by tax expert, Dan Neidle. After conducting an in-depth analysis, Neidle revealed that British companies are now paying more taxes to the government than they did in the 1970s. This surge in taxation has been attributed to the recent increase in corporation tax, which has been raised from 19% to 25%.

Tax Cut Negotiations

News of this growing tax burden for businesses has been met with widespread concern at the Conservative Party conference. Hunt has been subjected to an array of appeals from fellow MPs, who are pushing for tax cuts as a means to stimulate economic growth.

However, despite affirming his dedication to reducing business taxes, Hunt cautioned that the government may not be in a position to advance these discussions at the current time.

The Impact of Corporation Tax Increases

Neidle’s analysis did not stop at alerting us to the rising tax pressures for businesses but also pointed out the repercussions of the recent increase in corporation tax. Although some might argue that a rate of 25% is relatively low – especially when compared with tax rates of the past decades that were as high as 52% – Neidle observes a different picture.

The Plight of Larger Businesses

Neidle also highlights that these corporation tax pressures disproportionately affect larger businesses. This is because, while smaller firms also pay a lower headline rate and usually qualify for more tax breaks, larger companies may not qualify for such measures.

Assessing the current climate, Neidle concluded by saying that while raising the corporate tax may not have been the wisest approach, it was possibly the ‘least of several bad ideas’.