Commenting, EEF Chairman, Martin Temple, 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 – 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.
ENDS