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The Economy and Welfare Reform

I am not entirely sure that that is relevant to this debate. How are British companies supposed to compete when they have already been hit with £43 billion of new business taxes? Taxation is now the key factor for four out of five companies in determining their international investment locations. Let us look at what is happening in the rest of western Europe, let alone the rest of the world. Germany is cutting its corporation tax, and France, Denmark, Sweden and Italy—hardly bastions of neo-liberalism—have all cut their tax-GDP ratios in recent years. In Britain, however, Labour has increased taxes and will increase them further, whatever the Chancellor promised in the election.