Blair Promises To Keep Tax And Red Tape In Check

by Jason Gorringe, Tax-News.com, London

24 March 2004

British Prime Minister Tony Blair assured business on Monday, that the Labour government intends to keep corporate tax rates on hold, whilst curbing excessive red tape in a bid to ensure the UK economy remains competitive.

In a speech delivered to financial executives in the City of London, the Prime Minster pledged: "I promise we will continue to look with you at the business tax regime so that we provide incentives for investment in wealth creation and rewards for success, and make and keep the UK as the best place for international business."

Mr Blair pointed out to the audience that the UK has a better record on low business taxation and bureaucracy than other member states of the European Union, adding that he intends to push his arguments for lower business regulation at the upcoming EU summit of heads of government.

"The best contribution pro-Europeans can make to the cause of Europe is by ensuring that in Europe we face up to, rather than duck, the difficult decisions about economic reform," he argued.

Mr Blair also warned against a rise in protectionist economic policies in the face of growing competition from the likes of China and India

"Protecting industry and commerce from the inevitable is impossible, expensive and damaging," Blair said. "On the other hand, if we set out to build an ever-more open, flexible economy...we will end up benefiting from the exchange."

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