CITY AM – Profit tax hike to hit investment 

Jeremy Hunt and Rishi Sunak’s profit tax rise to hit investment, survey finds

CITY AM SAYS Jeremy Hunt and Rishi Sunak’s corporation tax hike is poised to squeeze the UK economy by mothballing investment, new figures out today show.

Nearly half of all mid-sized companies intend to shelve big spending projects due to the Chancellor and Prime Minister snatching a greater share of company profits, according to consultancy BDO.

Last month, the rate of corporation tax jumped to 25 per cent from 19 per cent, reversing years of cuts to the headline rate of the profits tax. It’s still low compared to other OECD nations.

BDO said of the 500 medium-sized companies it surveyed, almost a third (31 per cent) warned the uplift in corporation tax had prompted them to mull leaving the UK.

Read the business pages here