City warns on harmful tax policies
BUSINESS leaders yesterday implored the government to consider the long-term effects of tax and spending policies on the future competitiveness of the UK as a global financial powerhouse, in a new report co-authored by Canada Corporation and business group London First.
Baroness Jo Valentine, the chief executive of London First, said London needs to be able to bat on a level playing field and that the UK financial services industry needs to be as strong as possible to stimulate economic recovery.
“We need to be able to trust the government to implement a tax policy that raises money but also puts businesses in the position they need to be in to stay in the
UK,” she said. “There’s no point in going for quick fixes where the government doesn’t fully understand the consequences beyond the short term.”
Valentine said the proposal for a new 50p income tax rate was “dubious” at best.
“To me, the upside is very small and the potential downside very large,” she said.