Miliband Hopes to Reverse Corporation Tax Cut
Ed Miliband has revealed that, if Labour succeed at the next general election, he plans to reverse Conservative plans to cut corporation tax. The plans in question are set to reduce the headline rate from 21% to 20%
Miliband said that for too long, Britain has “supported some businesses and not others.” He intends to use the money to support SMEs by cutting business rates, which he claims would help “1.5 million shops, pubs, workshops and hi-tech firms.”
However, while some professional advisers agree with these plans, others are not so sure that it is an effective way to support smaller businesses. The recent trend has been for the UK to create a climate that is attractive to large companies. These moves have aimed to create jobs and aid economic growth. Some fear that failure to continue this trend will harm the whole economy, and may also ultimately prove harmful for many SMEs.