UK Chancellor announces new business-government forum on tax

British businesses and the Government will form a new working group to look at the long-term challenges facing the UK tax system and ensure competitiveness remains at the heart of any future reforms, the Chancellor of the Exchequer, Alistair Darling announced this week.

In his speech to a Chatham House conference on “New Financial Frontiers” he set out plans for a new working group, to be chaired by Financial Secretary Jane Kennedy with business representatives.

The group will discuss ways in which the tax system can provide the long-term certainty that multinational companies need in the face of increased competitiveness and other global challenges facing both business and government.

In his speech the Chancellor said:

“We need to anticipate a growing problem for all governments – how to protect revenues in an increasingly global market place for goods and services while promoting the competitiveness of our businesses so that they can take advantage of open markets.

“Tax is one element of the strong business environment which makes the UK competitive at a global level. The UK corporation tax rate is one of the lowest in the G7.

“I am determined that we do what is necessary to remain one of the world’s best places to do business – and critically to ensure that we maintain our strong and resilient economy and our position as the world’s leading financial centre.

“I am therefore bringing together a group with industry representatives to discuss ways in which the tax system can provide the long-term certainty multinational companies need, considering the competitiveness and other challenges facing both businesses and government.”