The head tax strategist of the government has maintained that cutting corporation tax will be post-Brexit key to the success of the United Kingdom.
Yesterday, Mel Stride, a Conservative MP and the financial secretary to the Treasury, said that bringing the corporation tax down to 17 percent by 2020 was important in keeping the UK competitive after Brexit.
The corporation tax rate of the United Kingdom is currently at 19 percent and is already the lowest of all the industrialised western economies of the G7.
Stride stated: “There are challenges ahead undoubtedly with Brexit.”
He added: “I’m always aware of being on the side of businesses – at the end of the day, they create the jobs that create the wealth that pays the taxes that funds the vital public services on which we all depend.”
He was speaking during a visit to Hambro Perks, a venture capital firm, discussing how to best support the growth of companies in the United Kingdom.
He said that he would look into how the British Business Bank could make direct investments in the small companies, instead of ploughing money into venture capital funds which cream off charges.
Stride explained: “What we don’t want is politicians and officials and bureaucrats to be deciding what constitutes a good investment opportunity. I think the funds provide a vital input in terms of deciding where to invest.”
He added: “But equally, there is the point that there are costs associated with going through funds, so it’s an area that I will certainly look at.”
He said that clamping down on the tax that is paid by tech giants from the US was another one of its priorities.
He said: “These are businesses which under the current international tax regime are not having their profits fairly captured. There’s no case of avoidance, but they are generating huge value through the interactions of the users who are based in the UK and the actual site itself.”
Stride added that Britain is still working with the Organisation for Economic Co-operation and Development (OECD) and the European Union to potentially move to revenue-based, instead of profit-based, taxation.