Industry welcomes business-government tax forum

Commenting, Tony Sarginson, Regional Manager for EEF, said:

“Business will welcome this as a first step towards concrete action for a more coherent, long term strategy for a competitive business tax regime. However, it is essential that all sectors of the economy and businesses of all sizes and sectors – not just the most mobile of multinationals – are represented on the group.

“As other countries move to improve the competitiveness of their tax systems, the UK must not lose position. Repeated changes to rates, rules and allowances create the impression of a lack of a proper, consistent strategy and the UK needs a business tax system that attracts investment and supports manufacturers’ efforts to move up the value chain."

EEF had previously called for the government to set out a long term strategy for business taxation in a report published last December, ‘Blurred vision – The need for a clear strategy on business taxation’. The report included a major survey of manufacturing companies who were asked their views on the current UK tax system and its impact on their businesses.

According to the survey, 54% of companies said that their tax burden had risen in the last five years, with one in eight describing the increase as significant.

EEF believes a first step towards addressing the tax burden would be to reduce the headline rate of corporation tax to 25% as soon as public finances allow.

Notes for editors

‘Blurred vision – The need for a clear strategy on business taxation’ was published jointly with PriceWaterhouseCoopers in December 2007.

For more information contact Jenny Russell 0191 4165656 jenniferrussell@eefnorthern.org.uk

EEF Northern has more than 500 member companies in the North of England and provides the most cost effective legal, employment law, employee relations and HS&E advice and training in the UK.

EEF Northern employs teams of HR and employment specialists and has access to more than 60 lawyers and barristers to help its members understand the issues associated with the ever increasing introduction of legislation and regulation.

Membership of EEF Northern gives immediate unlimited access to the team of specialists - including the largest specialist employment law team in the UK, which provides professional no-nonsense advice and guidance either by telephone or in person.

In addition, EEF represents the interests of its members at UK Government, European and international level, and can provide advice and support on issues and legislation that can affect almost every aspect of business.

Visit www.eef.org.uk/northern for further information.