The City wants tax cuts – but does not think Osborne shares its hope

Tim Wallace
Follow Tim
CUTS in corporation and income taxes would benefit the City, but expectations are low for George Osborne to offer any in tomorrow’s Autumn Statement, according to the Voice of the City survey published today.

More than two-thirds (69 per cent) said they would be “very favourable” or “somewhat favourable” towards a proposal to cut corporation tax more quickly. A similar proportion (68 per cent) said the same of scrapping the 50p tax rate for high earners.

Yet just 28 per cent think it “very likely” or somewhat likely” that the Chancellor will cut corporation tax more quickly, and a mere 13 per cent think he might abolish the top income tax rate.

Meanwhile 57 per cent expect him to cut employers’ national insurance (NI) contributions to encourage firms to take on young workers – a plan not dissimilar to the NI holiday proposed by Labour’s Ed Balls (pictured left).