FD Capital Proposes 19% Corporation Tax in March Budget to Bolster UK Economy

FD Capital, a leading entity in the UK’s financial recruitment domain, is pressing the Government to enact reductions in personal and corporate taxes in the upcoming March budget, whilst expressing disapproval of the escalated Corporation tax. The agency is adamant that the government must swiftly navigate towards a 19% or lesser corporation tax to sidestep further economic adversities.

The agency recommends that the government could facilitate a 19% corporation tax in the March 2023 budget by paring down governmental spending and scaling back civil service numbers, both propositions previously aired by the government preceding this year’s general election.

Corporation tax is often pinpointed as the most economically deleterious tax, predominantly impacting the company’s workforce and the broader public. Advocates for a reduction in corporation tax tout its universal economic benefits, including wage growth and the attraction of new international investments.

The government had earlier managed to reduce corporation tax from 28% to 19% by 2018. Nevertheless, Rishi Sunak, during his chancellorship, disclosed a hike to 25% from April 2023, attributing it to the fiscal deficits borne by the government amidst the pandemic. Liz Truss had contemplated reversing this hike, which was ultimately realised by Jeremy Hunt as Chancellor in Rishi Sunak’s cabinet in 2023.

It is a misconceived notion that corporations are the primary sufferers of higher corporation tax rates, with recent studies indicating that the detrimental effects are dispersed among business owners and low-income employees.

The UK’s post-Brexit success is contingent on its reputation as a leading global business destination. However, the competitiveness of the UK’s corporation tax rate is challenged, particularly in comparison to the Republic of Ireland’s more appealing 12.5% rate.

FD Capital contends that a cut in corporation tax to 19% would serve as a catalyst for the UK’s economic resurgence, enhancing its global competitiveness and propelling growth by bolstering business confidence and inciting new investments.

Further details about FD Capital and its economic and recruitment research can be found at https://www.fdcapital.co.uk