Hunt’s tax on growth plunges the UK down Europe’s competitiveness table

Dropping from 4th= to 10th= the Chancellor’s bizarre decision is panned by all

Montage © Facts4EU.Org 2023

Higher taxes for business will result in lower growth and lower business tax revenues

All budgets contain a great many measures affecting all the economic activities of the country. The budget of the Chancellor of the Exchequer Jeremy Hunt yesterday was no exception. Today we focus on just one measure which is key for the success of Brexit Britain: the headline rate of tax on business.

‘Corporation tax’ makes everyone think of large companies. In reality this is a tax on the profits of every business in the country, from a small furniture maker employing six people in the West Country to a global pharmaceutical company headquartered in London.

Brexit Facts4EU.Org Summary

Brexit Britain's falling competitiveness under Chancellor Hunt

Hunt’s business tax rate will now make the UK less attractive than Lithuania, Poland, Latvia or Greece
It puts the UK on a par with Belgium, home to the EU’s institutions
Brexit Britain was previously 4th equal when placed in the EU league table
After yesterday’s budget, Brexit Britain will plummet to 10th equal
Right now, only three EU countries have a more attractive business tax rate than the UK
From 6th April only five EU countries will be less attractive than the UK

[Source: OECD tables accessed 16 Mar 2023.]
(Note: Not all EU countries are large enough to appear in the OECD's figures.)

The UK’s Rejoiners and ‘Globalists’ have received over £3m in foreign funding

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What has the Chancellor done?

Following the decision of Mr Hunt yesterday the rate of corporation (business) tax in the UK will now rise from its current level of 19% to 25%. This represents nearly a 30% increase in the tax which businesses will have to pay on their profits.

Not only will this result in companies choosing to invest in countries where the tax rate is lower, it will also result in a lower amount of tax revenues for the Treasury. Whilst this sounds counter-intuitive it is not. The evidence shows that (up to a certain level) an increased tax rate actually reduces the amount of money a government receives. This has been proven many times around the world and the evidence is compelling.

It applies to business and personal taxes and readers may wish to review a report which Brexit Facts4EU.Org published last year, which explains the phenomenon in more detail.

Observations

This matters if readers and their loved ones want continued high employment in Brexit Britain

As regular readers will know, Brexit Britain has defied all the so-called ‘experts’ and has an unemployment rate far lower than that of the EU average. The massive job losses threatened by David Cameron, George Osborne, and HM Treasury if we voted to leave the EU not only failed to materialise, they actually turned into a massive increase in jobs.

Not one head has rolled at the Treasury as a result of this, nor has there ever been an apology for misleading the public in such a grotesque way.

Now we have the Remain-voting Chancellor – who vowed to halve business tax rates when he stood as a candidate to take over from Liz Truss as PM last year – deciding to increase business tax only a few months later. All the evidence shows that this is the last thing the country needs as it faces very uncertain economic times, given the troubling developments in Europe and around the world.

Case study

Facts4EU knows of one SME business – currently based in the UK and selling globally – which is considering a major investment for them. This company can be based anywhere. The owners tell us that they are now exploring the possibility of relocating to Ireland, where the business tax rate is half that in the new Chancellor’s United Kingdom.

25% of the tax on the extra profits the Company could generate from this investment will be lost to the Treasury if this business relocates. In addition, all of the existing tax revenues currently being received by the Treasury will also disappear.

19% of something is something. 25% of nothing is nothing.

We must get reports like this out there

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[ Sources: Chancellor's statement 15 Mar 2023 | OECD tax rates tables ] Politicians and journalists can contact us for details, as ever.

Brexit Facts4EU.Org, Thurs 16 Mar 2023

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Reader Comments 12

1. Jon, Wales , Thursday, March 16, 2023, 08:27:

In my opinion, I suggest pro-EU Hunt has PURPOSELY raised corporation tax to ensure our country is far less attractive for domestic and inward investment.
History has shown when taxes are lowered the treasury receives more revenues?
I might even suggest Hunt has taken this action in an effort to climb back into bed with the EU?
Equally, PM Sunak is trying to break up our United Kingdom (as I view it), as I don't see him standing up for our Union - but I do see him getting cosy with the commission who couldn't wait to come to our country for Sunak to surrender Northern Ireland to the EU.
When we see huge smiles from the commission or from Macron, we KNOW there is likely to be a dodgy deal in play without any scrutiny whatsoever - perhaps done in secret, just like the EU does.
We cannot trust Hunt at all, for during his bid to be elected leader of the conservative party, his view on reducing corporation tax was very clear.
So far as Sunak is concerned, one needs only go back and view what he had to say during his previous leadership bid (he was knocked out of that bid, as was Hunt).
This leaves me politically homeless, as these two men appear extremely weak with no 'fight' in them.
The largest vote in British history said we "Leave the European Union" - It appears the Westminster bubble have still not heard us.
Under present circumstances I will NOT vote Tory, and I absolutely WON'T vote Labour ( whose leader cant define a woman - yet he married one)! - and Lib-dems are NOT worth it.
I will not waste my vote, so REFORM party here I come - unless the Tories get themselves in order - and fast?
I caveat this by saying for the record, there are some excellent Tory MP's who actually do stand up for our United Kingdom.
I ask Prime Minister Sunak to please get his act together, or your party may face wipe-out come elections - as they say, the ball is in your court, but please don't take the electorate for fools as we 'see' what's happening.

2. Ashley Great Britain , Thursday, March 16, 2023, 08:43:

Judging by these actions it's as if hunt and sunak are working for the EU instead.
Blatantly making decisions that appear to weaken the UK.
Now the rejoiners are in charge they will further prevent our freedom's and independence.
Increasingly making decisions to prevent Brexit.
They are weak and damaging.
I can't wait to vote Reform UK, If they allow a genuine election to take place that is.

3. RW52 , Thursday, March 16, 2023, 09:21:

I agree 100% with 1 and 2 and will be voting Reform in the next elections.

4. Have You Wondered , Thursday, March 16, 2023, 09:38:

.
3. RW52 - Ditto.
.
When you look over the last 40 yrs of tribal politics and to where it has led to the present day with the UK ‘silverware’ sold off and asset stripped, rife uncontrolled corruption in Westminster – we need a complete new regime change.
.
And if the current 3 party's are the only candidates on offer I might just spoil my vote with the words 'non worthy of my vote'.
.
A tip for Mr. Tice - be two jumps ahead because if the incumbents see you coming they will lay traps to keep the UK within the reach of EU claws.
.
Also, make sure you and your compatriots squeaky clean because the first barrage will be (as you have already experienced) a campaign to discredit you and the party, fired from an absolutely corrupt regime in Westminster, in an act of total hypocrisy.
.
Why does the UK need another level of EU corruption above that which the UK has already?
.

5. Have You Wondered , Thursday, March 16, 2023, 10:16:

.
1. Jon, Wales , Thursday, March 16, 2023, 08:27:
In my opinion, I suggest pro-EU Hunt has PURPOSELY raised corporation tax to ensure our country is far less attractive for domestic and inward investment.
History has shown when taxes are lowered the treasury receives more revenues?
I might even suggest Hunt has taken this action in an effort to climb back into bed with the EU?
Equally, PM Sunak is trying to break up our United Kingdom (as I view it), as I don't see him standing up for our Union - but I do see him getting cosy with the commission who couldn't wait to come to our country for Sunak to surrender Northern Ireland to the EU.
.
.
Why Hunt's sudden about face on lowering taxes?
.
All part of Sunaks's Windsor Agreement?
.

6. Sparky , Thursday, March 16, 2023, 10:54:

Jeremy Hunt has tried to balance off the increase in CT with additional investment wright offs. The UK has suffered flat levels of investment for the last 7 years because of Brexit uncertainty. By bringing investment forward he is trying to create a boost to the economy and avoid recession before the next election.
At least he has used the OBR this time and not repeat the mistakes of Liz Truss/Kwasi Kwateng.
The OBR's assessment for the budget covers Brexit impact and does not make good reading, 15% reduction in EU trade and 4% drop in productivity.
Will be interesting to see how Reform performs in next GE but it will probably just split the Cons vote and put Labour in power. Reform currently polling at 7%, same as Greens and 3 points behind LD's

7. KB , Thursday, March 16, 2023, 11:52:

Have You Wondered (5): I was wondering the same.
This dogged refusal to abandon the CT increase in the face of all the criticism from his own party; it can only be because it is a secret part of the "Windsor Agreement" ?

8. Gazzablack , Thursday, March 16, 2023, 14:19:

6 sparkless
.
To find the cause of Brexit uncertainty, just look in the mirror.
.
It was the remainer cabal (of which you are a member) fighting tooth and nail to overturn the largest democratic mandate that led investors to keep wondering, "will we be out or will we be in"?
Had the remainers not done so, investors would have been able to invest confident that we would be out.
.
The OBR forecast there would be a £30 billion black ho!e in the UK economy after the Truss budget. It turned out there was no £30 billion black hole.
The OBR should be ignored because it is incapable of giving sage council.

9. LuxuryBalloon , Thursday, March 16, 2023, 14:33:

Did Truss and Kwarteng not try to reduce the corporation tax … and did the money markets not react negatively to their plans?

10. jon livesey , Thursday, March 16, 2023, 14:56:

6. Sparky , That is truly idiotic. Simply idiotic. Announcing increase taxes on future profits does not "bring investment forward". It sends investment elsewhere. You should drop the plummy word and phrases and try thinking for once in your life.

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