Chancellor to set up forum on corporate tax regime

The Chancellor, Alistair Darling has announced proposals for a working group to review the long-term future of the UK’s corporate tax regime.

Mr Darling made his announcement in a Chatham House speech.

The 10-strong forum, which is to be chaired by Jane Kennedy, the financial secretary to the Treasury, and to be comprised of government and business leaders, will examine how the tax system can best serve the long-term stability and competitiveness of UK business.

Mr Darling said in his speech: “We need to anticipate a growing problem for all governments: how to protect revenues in an increasingly global marketplace for goods and services while promoting the competitiveness of our businesses so that they can take advantage of open markets.”

The Chancellor added: “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.”

Richard Lambert, the director general of the CBI, said: “This is a welcome development and business will be encouraged that the government wants to provide certainty and consistency for the long-term.

“Although there is little room for manoeuvre on public finances at present, the CBI looks forward to working as part of the new group to identify a clear, internationally competitive corporate tax strategy for the UK.”

Date:30 April 2008