Commenting on the Spring Budget 2023, a spokesman for the Centre for Brexit Policy said:
“The Chancellor’s decision to increase corporation tax to 25 per cent is an anti-growth move that will deter inward investment and makes the UK a much less attractive country to do business.
“The competitiveness of the UK’s corporation tax now drops from number 6 to number 19 among the 38 OECD countries. Companies will base themselves in countries with a far more competitive corporate tax rate such as the Republic of Ireland, which has a rate of just 12.5 per cent.
The Chancellor’s claim that offsetting 100 per cent of UK investments against tax represents a gain is, in fact, a further decrease in tax competiveness as it has been substituted for the 200 per cent Super Deduction.
“For the small and medium sized businesses who remain in the UK, this move will have a seriously detrimental impact on their operations.
“The decision to increase corporation tax is based on a fallacy that it will significantly boost tax revenue.
“The reality is that from 2010 to 2017 UK corporation tax was cut from 28 per cent to 19 per cent and revenues almost doubled from £31.7bn to £62.7bn.
“It is very disappointing that the Government has failed to listen to economists, business leaders and many of their own parliamentarians on this important issue.”