Lambert Reiterates Warning On UK Taxes

by Jason Gorringe, Tax-News.com, London

11 October 2006

Speaking on the occasion of his 100th day as head of the Confederation for British Industry (CBI), Richard Lambert reiterated a warning given in his first ever speech as head of the organisation regarding the UK's high taxes, and their effect on the country's competitiveness.

In a week which saw banking group HSBC draw attention to the high tax burden imposed on business by the UK authorities, Mr Lambert suggested that the UK is often compared unfavourably with Ireland as a location.

Warning that Dublin, with its 12.5% tax rate, is being eyed by many businesses, the CBI boss observed that:

"A trickle of companies are relocating and our anxiety is that it does not turn into a flood," although he qualified this by announcing that:

""I'm not suggesting we should have a tax rate of 12.5 percent, but we should recognise this is a very competitive space."

Mr Lambert went on to add:

"Compared to the rest of Europe the burden of taxation is rising in the UK at the same time as tax collection has become noticeably more aggressive."

According to CBI figures, the tax burden on firms based in the UK has increased by GBP59 billion since 1997.

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