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UK must cut compliance burden and complexity of tax regime, says CBI

22 February 2012

Joe Dalton


The Confederation of British Industry (CBI) signalled a general approval of Chancellor George Osborne’s tax policy yesterday, but warned he must get the details right to make the UK the most competitive regime in the G20.

 The CBI proposed a £540 million ($846 million) package of tax cuts to ensure the March 21 budget builds on positive steps taken in the Autumn Statement.

CBI director-general John Cridland said although public finances are tight, there is some room to manoeuvre on tax.

But the organisation thinks excessive tax compliance burdens and overly complex legislation is still holding the UK back when it comes to attracting multinationals and foreign investment.

CBI chief economic adviser, Ian McCafferty, said it is clear the government is committed to making the UK the most competitive tax regime in the G20, and to ensuring the regime is fit for purpose for a global economy, but the details need some fine tuning.

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