IoD: We need urgent action on tax

Thursday, 19, Oct 2006 12:00

The tax system must be radically reformed if Britain is to maintain a competitive business edge, the Institute of Directors (IoD) has argued.

Welcoming today's report from the Conservative tax reform commission, which includes proposals to drastically cut personal and business taxes, the IoD said lower and simpler taxes were needed.

"The business voices on the commission were united in their calls for radical reform," said IoD chief economist and commission member Graeme Leach.

He noted that most institute members believed high taxes were harming business.

"The tax burden in the UK is too high and must be brought down – otherwise we risk further erosion in our competitiveness," Mr Leach argued.

He described the Tories' proposals as "a bold step in the right direction" and called on all parties to "seriously consider" them, adding: "The clock is ticking and we need urgent action."