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East Midlands Chamber News

DNCC Reacts to Labour’s Business Tax Proposals

Labour Leader Ed MilibandCommenting on Opposition Leader Ed Miliband’s proposals about cutting Business Rates but raising Corporation Tax, ahead of his speech to Labour Conference later today, George Cowcher, Chief Executive of the Derbyshire and Nottinghamshire Chamber of Commerce, said: “Labour’s whole policy here is muddled. Hiking Corporation Tax to offset cuts to Business Rates is just a sticking plaster gimmick that doesn’t get to the real root of the problem.

“Reducing Corporation Tax has been one of the key achievements of the Coalition. It has helped create a degree of stability and certainty for companies and has sent out a clear signal to investors that the UK is open for business.

“The real issue is with the Business Rates system itself, which is outdated, fundamentally flawed and in desperate need of reform. Business Rates are a huge drag on business, hitting companies of all sizes long before they make any profits.

“To create an environment where companies can thrive, both Business Rates and Corporation Tax have to be contained. Increasing one to offset cuts to the other will serve only to further complicate what is already an extremely complex tax regime.

“Ultimately, companies of all sizes need to be clear on taxes and rates bills, so that they can get on with generating jobs, wealth and growth with certainty.”