Yahoo Finance Increasing corporation tax in Budget would be wrong decision – shadow chancellor
Increasing corporation tax in next week’s Budget would be the “wrong decision” by the Government, the shadow chancellor has said.
Anneliese Dodds questioned the need for “immediate” changes to the tax system, after Labour leader Sir Keir Starmer said “now is not the time” for tax increases.
No spending or taxation plans have been confirmed ahead of Wednesday’s Budget, but The Times reported that officials are considering plans to increase corporation tax from 19% to 25%.
We need a recovery from the Covid crisis that works for all parts of the economy and all parts of our country.
Watch my speech to the Institute of Global Prosperty @glo_pro live now: https://t.co/7CKaajmYiR
— Anneliese Dodds 💙 (@AnnelieseDodds) February 25, 2021
The shadow chancellor used a pre-budget speech to the Institute of Global Prosperity at the University College London to outline Labour proposals to revive British high streets.
Asked if she would support an increase in corporation tax at the Budget during a question and answer session after the speech, she said: “There’s clearly a discussion to be had around corporation tax.
“Obviously the UK’s corporation tax rate is lower than that of many comparable nations and I’ve always been clear that I think it’s really important we do have a more progressive tax system.
“I would say there is a big question about whether we need to see immediate changes to the tax system coming in and applying to businesses and to families right now.”
Ms Dodds said that imposing tax changes would go against the “vast bulk” of what “expert commentators” had recommended.
“If Government is saying that they will be immediately imposing tax changes on the UK, I do think that is the wrong decision,” she said.
“If we’re talking about a longer term trajectory, then let’s have that discussion, let’s make sure that we do have that more effective tax system.”
