BCC: Tory tax policy a step in the right direction

Thursday, 19, Oct 2006 12:00

Conservative proposals to radically overhaul the UK tax system with a £21 billion package of reforms have been welcomed by the British Chambers of Commerce (BCC).

The party's tax commission suggests slashing the basic rate of income tax by 2p, and proposes to cut corporation tax by £3 billion.

BCC director general David Frost said: "The trend towards ever increasing levels of corporate tax in the UK needs to be tackled and I am glad that the report has come up with these proposals."

He urged the Tories to "recognise that the high burden of tax on business in the UK is threatening the country's competitiveness at a time when the rest of the world is moving towards low levels of corporate tax".

"I hope that the findings of this report are not kicked into the long grass but used to inform the Conservatives' approach towards business at the next election," he added.