While the world economy returned to growth in the aftermath of the economic recession, the pattern of growth has been inconsistent. The global economic outlook continues to be uncertain so the pressure on UK Government to help create an economic environment which encourages growth is intense. Creating a tax system which helps attract investment, fosters growth and which makes the UK a place where companies want to do business is a priority. The Government’s approach is to address two key areas; tax competitiveness and tax simplification.
The Total Tax Contribution surveys have gathered data since 2005, and the results have been useful, providing information that has assisted the debate about the shape and competitiveness of the business tax system. It will be important to continue to collect this data to help monitor future changes in the economic environment and in particular to assess the impact on business of new policy changes the Government makes to the UK tax system in order to achieve its objectives.
This survey will be repeated in 2012 and to make it even more insightful and helpful to the policy debate, it is hoped that the questionnaire will be extended to put the contribution made by member companies into a wider economic context – looking beyond tax at the companies’ direct economic contribution.