A Labour government would cut and freeze business rates for more than 1.5 million properties, shadow chancellor Ed Balls has revealed.
The move would be part of a package of measures to create a competitive tax system in Britain that is viewed by companies as ‘a great place to do business, not simply a cheap place to shift their profits’.
He said Labour would maintain current levels of corporation tax and instead focus its attentions on business rates. ‘When resources are tight this is a tough choice to allow us to support more businesses and keep our overall business tax regime competitive,’ he added.
Katja Hall, CBI deputy director-general, said: ‘A competitive business tax system is crucial for future growth – and that includes an attractive headline rate of corporation tax.
‘Tax and other measures to boost business investment, including capital allowances and equity finance will help firms of all sizes harness their potential, particularly medium-sized companies and those in the manufacturing sector. It is also important that the tax system encourages and rewards a long-term investment focus.
‘The best way of ensuring the recovery benefits all is through a thriving private sector and businesses of all sizes will deliver this growth.’
