The government’s planned tax cuts will not boost growth, the new chancellor has been warned.
Kwasi Kwarteng is due to unveil his mini-Budget later this week, including plans to slash corporation tax from 25% to 19%. But analysis by the Institute for Public Policy Research cast doubt on his assertion that lower taxes will mean greater investment.
Britain, it said, had the lowest rate of business investment in the G7 in 2019, despite also having the lowest corporation tax rate. In 2020, the UK also ranked 28th for business investment out of the 31 members of the OECD for which data was available.
