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Labour would reverse corporation tax cut for financial services

Labour would reverse the Government’s plans to cut corporation tax as part of proposals to cap tuition fees at £6,000.

Under plans outlined by Chancellor George Osborne in March, the coalition Government will reduce corporation tax from 28 per cent to 23 per cent by 2014.

The rate was lowered from 28 per cent to 26 per cent in April this year, with further 1 per cent annual corporation tax cuts planned for the next three years.

However, reports suggest Labour would look to exempt the financial services industry from this reduction to help pay for reducing the annual tuition fees cap from £9,000 to £6,000.

Speaking on the BBC’s Andrew Marr show yesterday, Miliband said: “We voted against the £9,000 tuition fee. And what I’m showing today is the way we can change our economy for the future. We face big choices and tough choices in this country and a tough choice that we face is this.

“Now I think there’s an easy answer to it, but do we cut taxes for financial services, do we carry on with a fast buck economy, or do we change course? Do we say invest in the future of our young people? I think we’ve got to put an end to the fast buck era. I don’t think the priority for UK is to cut taxes for financial services and it’s a big choice and it’s a big difference between ourselves and the government.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Is the cut in corporation tax only for financial services or is Mr Milliband being a disingenuous popularist liar?

  2. All I can say is, two Ed’s are not better than one

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