As part of a recent GE Capital project, our MD and Chairman, Daron Hutt, was interviewed on a number of topical business issues. In this video, we hear Daron’s thoughts on current government policies for UK economy growth and corporation tax.
If you would prefer to read Daron’s thoughts, a transcript is available below.
I think it’s very very difficult to understand what the Government’s really trying to do. If you were to give credit to the Government’s current fiscal policy, as an idea to maybe Government’s in the past in the recent past then it’s hard to see what this Government’s really doing that has any innovation. I actually strongly believe that there needs to be widespread tax reform.
I don’t understand why, for example, Employers National Insurance contribution is not just consolidated into PAYE. I don’t understand why we even have National Insurance actually. Why aren’t all these things not just consolidated into a much simpler scheme which is much easier to understand for both employers and for staff and much, much easier to administer. So I think there are lots of complexities in the way taxes are done.
You’ve got a problem with corporation tax as well, you’ve got huge companies not paying it and you’ve got smaller companies that don’t have the resources to get around those loopholes which is necessary to be able to compete on level terms with the bigger companies. So you have a competitive mismatch because big companies, lot them don’t pay corporation tax and you’ve got small companies which don’t have the resources to avoid it. It seems to me the corporation tax is a bit of a strange instrument in that way, and maybe it be much better for everyone if they just scrapped it and came up with a different style of taxation to offset that.
So I think there are a number of things that could be done to grow the economy that don’t necessarily mean investment but could just change the way that these things are actually administered