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London First calls for “consistency and competitiveness” in the UK tax regime

Ahead of the Chancellor’s Autumn Statement on Wednesday, London First has published “Consistency and Competitiveness: Essential steps towards a UK tax regime that supports economic growth”, a short paper that considers a number of aspects of the UK tax regime specifically in terms of their impact on the London economy.

Its principal recommendations are:

  • a clear public commitment from government to the restoration of the top rate of income tax to 40 per cent, on grounds of competitiveness and yield;
  • a clear public commitment from government that the Tax Code will be applied consistently, arbitrary policy changes will not be implemented and compliant companies will be recognised, by government at least, as such;
  • the Bank Levy being raised as a stable, predictable and transparent tax rather than one whose level varies from Budget to Budget; and
  • the devolution of property taxes to London Government, matched pound for pound by a reduction in grant, to enable the system to be better designed to meet London’s needs.

If implemented, these recommendations would go someway to achieving a competitive tax regime that is seen to be stable, transparent and predictable, and delivering the associated economic benefits.

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