Cut corporation tax to 15% and get rid of 50p tax, directors urge

The Government needs to cut corporation tax further and abolish the 50p tax rate, the Institute of Directors (IoD) has claimed.

In its report, The Route Back to Growth, that was launched today, the IoD lays out 15 proposals, claiming that if implemented, they could make the UK one of the most competitive and advanced economies in the world by 2020-25.

The proposals were launched by new director general Simon Walker, and include a call to reduce corporation tax to 15 per cent by 2020, to promote international investment. Other recommendations include extending Quantitative Easing by £50 billion, getting rid of the 50p higher rate tax, and the introduction of nine major employment law changes.

Commenting on the report, Walker said: “No aspect of economic policy is more important than returning Britain to a growth trajectory. Without the belief that UK economic growth is expanding, confidence will wane, international investment will dwindle and British consumers and taxpayers will be left picking up the crumbs at the tables of faster growing competitors. The Government’s deficit reduction programme is a step in the right direction – but it must go faster and further before the economy is on track and prosperity returns.”

Meanwhile, ministers are today calling on businesses to help the Government to tackle employment red-tape. The Red Tape Challenge campaign is calling for suggestions on how regulations can be improved.

Commenting, business minister David Willetts said: “Businesses regularly tell us that the burden of regulation is too high. So today we are giving them a chance to tell us exactly which rules they think need to be reformed. The Government is committed to growth and the Red Tape Challenge is one way to make sure that we are getting out of the way and letting businesses do what they do best – taking people on and boosting the economy.”