Budget 2011: view from HM Treasury: CT reform and UK competitiveness

Returning the UK economy to strong sustainable and balanced growth requires a new model that is driven by investment and exports. Increasing the competitiveness of the UK tax system is vital for UK growth and in the Budget we set out our ambition to have the most competitive tax system in the G20.

In recent years we’ve seen a number of businesses taking their head office out of the UK amid concerns over tax competitiveness. The changes to corporation tax announced last week go a long way in reversing this trend and giving businesses the confidence and incentive to come back. Responding to the concerns from the business community we are on the road to a more competitive simpler and more stable tax system. Striking the right balance between a tax system that is fair and brings in the revenue that is due but also one that...