UK manufacturers 'must have tax cut'
An engineering body is calling on the UK government to cut corporation tax, after a survey found that medium-sized companies were being particularly hard hit.
The EEF group said the Chancellor, Alistair Darling, should cut the tax in his Budget announcement this week, which should be part of a wider, medium-term strategy to address the "deterioration" in the UK̵7;s tax competitiveness.
According to the EEF survey of 285 companies, 54 per cent of them said that their tax burden had risen in the last five years, with one in eight describing the increase as significant.
Smaller companies with between one and fifty employees were more likely to say that their tax burden had risen. Nearly 90 per cent of companies reported little or no ability to pass on the cost of tax rises.
EEF chairman Martin Temple said: ̶0;As other countries move to improve the competitiveness of their tax systems, manufacturers believe that the UK is heading in the wrong direction. If government is to recover the confidence of business and investors, it needs to set out a more coherent strategy of how it will deliver a more competitive business tax regime.̶1;
Image: Alistair Darling faces calls for business tax cut