Corporation Tax

Since Corporation Tax was cut in 2010 from 26% to 19% the actual revenues into the Chancellors coffers have steadily risen. This is because lower Corp Tax encourages companies to move to the UK, and existing companies to invest.

The correlation between lower Corp Tax rates and higher revenues, coupled with lower unemployment can be seen on the attached graphs.

Labours announcement of a return to 26% Corporation Tax would be disastrous for our economy, disastrous for jobs and while providing an immediate jump in revenues, this would without a doubt be short lived.

Our economy is the 2nd biggest in the EU, it is finely balanced and should not be meddled with in such an irresponsible way. We have just lived through nearly 10 years of austerity to reduce our budget deficit and it would be criminal to return to that kind of fiscal policy

PLEDGE: I would never vote to increase Corporation Tax for SME (small to medium businesses)