Unions pledge to cut corporate rates and close tax relief schemes
Labor has said it will remove trade rates and shut down a number of tax relief programs that the party says do not benefit the public or the economy.
Phantom Chancellor Rachel Reeves is expected to announce that a Labor government will immediately cut the business tax, before wiping it out altogether.
She will say, âOur high street businesses are doing so much to enrich our lives and our communities, facing enormous adversity over the past year. They are in trouble right now, with rate relief coming in March.
âThe next Labor government will cut corporate rates.
âWe will be making the biggest corporate tax overhaul in a generation, so our businesses can be ahead of the pack, without looking at opportunities going elsewhere.â
Ms Reeves will tell Labor’s conference in Brighton that the current system of business rates punishes investment, entrepreneurship and the high street.
And she will also announce that the party will reform tax breaks and remove those that benefit neither the taxpayer nor the economy.
She will say, âThere are hundreds of different tax breaks in the system.
âSome are important, but too many of them just offer loopholes for those who can afford the best advice.
âFor businesses, they create additional layers of complexity to navigate, and added together they cost more than our entire NHS budget.
âWe will look at every tax break. If it doesn’t work for the taxpayer or for the economy, we’ll take it away. “
Labor business tax reform would seek to shift the burden from the main street to the online giants and end the tax break given to private schools because of their charitable status.
The party is also reportedly aiming to raise Â£ 440million by closing the deferred interest loophole that affects private equity fund managers and the share of profits made from investment transactions.
Ms Reeves said: “Labor will tax fairly, spend wisely and run our economy at full capacity.”
The changes have been welcomed by business groups.
Small Business Federation National President Mike Cherry said: âThe Shadow Chancellor is right to propose concrete reform of a business tax that disproportionately weighs on small businesses and independent traders at heart. local communities.
He added: âTrade rates are a regressive tax that hits companies before they have achieved a pound of turnover, let alone profits, while discouraging sustainable investment.
“This proposal marks a welcome call to action that would remove more small businesses from the regressive rate system and rightly contemplate more fundamental reform.”
Tony Danker, CEO of the CBI, added: âThe change to this outdated system is chronically overdue.
âThe Labor Party should be applauded for seizing the problem and presenting a package of pro-growth and investment-friendly reforms that will reflect our green ambitions, spur economic recovery and help bring our regions up to speed. “
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