Darling Pledges To Consult Business Leaders Over Future Tax Changes

by Amanda Banks, for LawAndTax-News.com, London

23 May 2008

The UK's Chancellor of the Exchequer, Alistair Darling, has spoken out at the annual Confederation of British Industry (CBI) dinner to assure the country's major business leaders that the Government will work closely with them when making any drastic future decisions regarding business taxes.

Mr Darling made his statement in light of criticism that the UK's tax laws relating to business may be casting the UK in an unattractive light to potential foreign investors, and that recently introduced changes to the business tax regime have not been properly thought through .

Addressing some 1,500 delegates at the dinner, the Chancellor concentrated on the positive aspects of the current economic situation in the UK, but acknowledged that:

"Getting business tax right is not easy. We recognise that the need to fund public services - like universities and transport - from which you benefit, must be weighed against the need to maintain competitiveness. We need to get the balance right."

Darling went on to state:

"I also have to ensure that tax rates encourage investment by providing incentives to innovate and encourage growth."

"I want you to know that I am listening to you, and even though there will be times when we do not agree, it does not mean that I have not heard what you have to say."

"But we need the right corporate tax structure in order to be able to compete in the next 10 or 20 years. That is why I set up a group of business experts to examine what we need to do to ensure that Britain remains a good place to do business."

Also speaking at the dinner was CBI president Martin Broughton, who commented that:

"What business wants from the system of corporate taxation in Britain is clarity, certainty and competitiveness."

"What we are getting is cost, complexity and capriciousness."

"We now have a tax system which makes it harder for both British and foreign firms to justify investing in Britain."

Darling concluded his speech with a further attempt to accentuate the positive, stating that:

"I believe we can face the future with confidence. Confident about our country. Confident about our business. Confident in ourselves."

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