The CBI has set up a tax 'task force'. The mere use of the term is a bad sign. The membership also gives the game away. It includes finance directors from Pfizer, Rolls Royce, BP, Cadbury Schweppes and Barclays. Several are not names to inspire confidence in objectivity in this area.
Even worse are its terms of reference which are apparently to evaluate:
whether the current UK corporate taxation regime is fit for purpose over the long term, and drawing up proposals for how it should adapt to ensure the continued competitiveness of UK-based companies
If the CBI reckons the only way to make the UK economy competitive is by cutting tax then enterprise really has died in this country. They may not have noticed, but business competitiveness is based on supplying the right product at the right price at the right time to a customer who wants it. Tax does not feature in that equation. As defined here the CBI do instead think its linked to the degree of state subsidy they can enjoy. How far has their faith in the market fallen?
I really do despair when business leaders seem to know so little about the subject. This group is doomed to failure from the outset.
Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:
You can subscribe to this blog's daily email here.
And if you would like to support this blog you can, here:
What’s interesting is that the CBI seem to be under the impression that the purpose Corporation Tax should be fit for is ensuring the competitiveness of UK based companies.
Something tells me that asking people outside of the CBI what the purpose of Corporation Tax is might get some different responses – funding the national infrastructure they rely on to do business for instance.