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UK Company Tax Cuts Will Boost Growth, Thatcher Think Tank Says

Sept. 21, 2022, 12:55 PM

The UK economy is set for a significant boost if Chancellor of the Exchequer Kwasi Kwarteng scraps a planned increase in corporation tax, but reforming capital allowances could achieve even more, according to the research group founded by Margaret Thatcher.

Stopping the hike from going ahead in April -- among the tax cuts promised by Prime Minister Liz Truss -- could lift GDP by 1.2% in the long term, investment by 2% and wages by 1.1.%, the Center for Policy Studies said in an analysis Wednesday.

The modeling, carried out by the CPS and the US-based Tax Foundation, contradicts claims ...