[UK] Rishi Sunak unwilling to stop corporation tax rate rise

Rishi Sunak, the UK prime minister, has rejected calls from his own Conservative Party to cancel a rise in UK corporation tax due to come into force in April, Irish Examiner reports.

Next month, the levy on business profit is scheduled to rise from 19 per cent to 25 per cent, prompting demands to stop the increase in a bid to encourage investment. However, according to Bloomberg reporting, a person familiar with government plans says the PM will proceed with the rise.

Former prime minister Boris Johnson publicly called for UK corporation tax rates to match Irish levels or lower, in comments last week, reportedly arguing that Mr Sunak was not exploiting the benefits of leaving the EU. 

Supporters of former prime minister Liz Truss have formed a Conservative Growth Group. They have also asked chancellor of the exchequer Jeremy Hunt to put a stop to the planned rise, according to a person familiar with their submission to the UK Treasury. 

Mr Sunak is in an increasingly strong position to hold firm against Tory detractors over his budget plans after receiving widespread support for the Brexit deal signed with the European Union last week.

During his own term as chancellor, Mr Sunak reportedly planned a targeted relief for business investment to operate alongside the headline tax rise. At present, there is no similar plan in place, however, Mr Hunt has reportedly said business tax cuts are his priority.

Before the UK Budget on March 15, an improving public finances outlook is encouraging senior ministers to step up pressure on the Chancellor.

Two cabinet members have reportedly floated the idea that Mr Hunt should either scrap or curtail a planned rise in corporation tax. 

In addition, business secretary Kemi Badenoch has privately indicated that she wants to see the main rate cut, according to people briefed on those conversations. She is also said to be lobbying the chancellor on other mechanisms to reduce costs for businesses. 

Source: Irish Examiner

(Link via original reporting)

Rishi Sunak, the UK prime minister, has rejected calls from his own Conservative Party to cancel a rise in UK corporation tax due to come into force in April, Irish Examiner reports.

Next month, the levy on business profit is scheduled to rise from 19 per cent to 25 per cent, prompting demands to stop the increase in a bid to encourage investment. However, according to Bloomberg reporting, a person familiar with government plans says the PM will proceed with the rise.

Former prime minister Boris Johnson publicly called for UK corporation tax rates to match Irish levels or lower, in comments last week, reportedly arguing that Mr Sunak was not exploiting the benefits of leaving the EU. 

Supporters of former prime minister Liz Truss have formed a Conservative Growth Group. They have also asked chancellor of the exchequer Jeremy Hunt to put a stop to the planned rise, according to a person familiar with their submission to the UK Treasury. 

Mr Sunak is in an increasingly strong position to hold firm against Tory detractors over his budget plans after receiving widespread support for the Brexit deal signed with the European Union last week.

During his own term as chancellor, Mr Sunak reportedly planned a targeted relief for business investment to operate alongside the headline tax rise. At present, there is no similar plan in place, however, Mr Hunt has reportedly said business tax cuts are his priority.

Before the UK Budget on March 15, an improving public finances outlook is encouraging senior ministers to step up pressure on the Chancellor.

Two cabinet members have reportedly floated the idea that Mr Hunt should either scrap or curtail a planned rise in corporation tax. 

In addition, business secretary Kemi Badenoch has privately indicated that she wants to see the main rate cut, according to people briefed on those conversations. She is also said to be lobbying the chancellor on other mechanisms to reduce costs for businesses. 

Source: Irish Examiner

(Link via original reporting)