Simon Walker

“The reduction of corporation tax faster than planned is a positive step in the right direction, which we have long called for. Britain urgently needs to become a competitive, low tax economy, so the chancellor must not deviate from this path. It will take time and serious action to rebuild this country’s reputation as a place which welcomes business, and reducing corporation tax year-on-year helps that process. We should be aiming for a corporation tax rate of 15 per cent by 2020 – that would put Britain in a very strong position. The chancellor has not gone far enough or fast enough on income tax. 50p was hugely damaging, but at 45p we are still uncompetitive. Our members will congratulate the chancellor for resisting the temptation to limit further tax relief on pension contributions. The best news was the confirmation that a move to a flat-rate state pension will proceed. Many had started to worry that this was being blocked by the Treasury.”