So much for Singapore on Thames: UK corporation tax will be higher than France and Germany March 4, 2021 Yesterday, it was announced that corporation tax will rise from 19 per cent to 25 per cent by 2023 for UK companies with annual profits of £250,000 or higher. Although a new “super deduction” will see companies wipe out their tax bills by investing in property, plant and equipment for the next two years, the [...]
Budget secures £21.7bn in stealth taxes for Treasury coffers March 4, 2021 The Chancellor has made use of fiscal drag to secure £21.7bn in steal taxes by the end of the 2025/26 tax year. Fiscal drag is a phenomenon where inflation gradually moves more taxpayers into higher tax brackets. Some commentators describe it as the ultimate steal tax. In yesterday’s budget Chancellor Rishi Sunak chose to [...]
The Budget didn’t deliver a silver bullet for youth unemployment, but it’s a start March 4, 2021 This pandemic has drawn lines in society dividing outcomes by age, health condition, geography and job types, none more so than the negative economic consequences of Covid-19 for young people as they lose out on education, jobs, career progression and pay. Youth unemployment is currently around 13 per cent higher than pre-pandemic levels and, according [...]
Before the Bell: Sunak’s Budget aims to boost GDP, the pain comes later March 4, 2021 Although yesterday’s UK Budget was generally well received in the international markets, with the fiscal taps to be left fully open until December, the British Pound did rally. With the major decisions pre-announced earlier this week, a big equity market reaction to the Budget speech was unlikely anyway. In addition to the extension of Covid-19 specific support, [...]
Budget 2021: Main points in Rishi Sunak’s announcement March 4, 2021 The chancellor unveiled the contents of his Budget in the Commons this afternoon, announcing a raft of new support measures alongside plans to shore up Britain’s finances in the wake of the coronavirus pandemic. Rishi Sunak doubled down on his commitment to do “whatever it takes” to protect lives and livelihoods as he set out [...]
Beer boss: does Rishi Sunak’s bid to save pubs go far enough? March 4, 2021 It’s been no secret that the beer and pubs industry has been calling on the Chancellor to outline concrete support for one of the UK’s most beloved and vibrant industries. Today, we can start to see some light at the end of the tunnel and welcome the Government’s support. But is it enough or should [...]
Corporate tax hike could depress economic activity and reduce tax rise revenue, says IFS March 3, 2021 The corporation tax hike announced in today’s budget will lead firms to invest less in the UK in the medium term, the Institute for Fiscal Studies (IFS) has said. Chancellor Rishi Sunak today announced corporation tax will rise from 19 per cent to 25 per cent by 2023 for UK companies with annual profits of [...]
Editorial: Long-term growth worryingly absent in a tax-hiking, business-battering Budget March 3, 2021 Tax hikes are one thing – but more concerning are the pedestrian growth numbers that seem to be the new normal for the British economy Conservative Chancellors do not, as a general rule, batter big business or ordinary Brits with tax hikes. But these are not normal times, and batter both Rishi Sunak certainly has. [...]
Budget 2021: Keir Starmer accuses Sunak of ‘papering over the cracks’ March 3, 2021 Sir Keir Starmer has hit back at Rishi Sunak’s Budget, accusing the chancellor of “papering over the cracks” in his spending plans. The Labour leader said the chancellor was the person “actually making the decisions” in government, but said these decisions had “left us with the mess we find today”. Starmer accused Sunak of delivering [...]
Corporation tax hike: Rishi Sunak is on the way to creating a tax environment to stifle innovation March 3, 2021 Last week, Rishi Sunak rightly said that fintech is one of the UK’s big success stories, and that the growing industry needs access to talent, finance and support. I had therefore hoped for more good news for the sector in today’s Budget. However, it’s been announced that from 2023, the rate of corporation tax, paid [...]