Chancellor Rishi Sunak’s business investment tax cut fails to boost development investments from British businesses, according to analysis by The Financial Times.
The so-called “super deduction” introduced by the Chancellor during the pandemic gives businesses tax relief on investments in business development and the purchase of equipment.
Starting from April 2021, the plan is designed to ensure that businesses can withstand the economic hardship of the pandemic. Technology companies, in particular, seemed to be able to take advantage of the plan, as the sector typically invests a significant amount in equipment, R&D and technology.
However, the data were first analyzed at The Financial Times It has been shown that, to date, more than one year after the tax plan came into force, business investment has failed to increase.
Data from the ONS show that business investment in the first two quarters of this year is 9% below pre-pandemic levels (last quarter of 2019).
The “super deduction” was part of a wider plan for economic growth in the UK from the government, which sought to broaden the country’s position in areas of “high skills” such as technology.
Earlier this year, Sunak said it was looking to “build on the momentum of the extraction to stimulate and sustain growth in the UK”, but the Chancellor’s enthusiasm is undermined by the Chancellor’s enthusiasm at the difficult economic realities ahead. in the UK.
The new analysis comes after the Organization for Economic Co-operation and Development (OECD) showed a bleak economic forecast for next year in the UK.
OECD forecast economic growth in the UK to sit at 0% next yearthe lowest of the G20 nations, with the exception of Russia, which continues to be hit by sanctions after the invasion of Ukraine.
Rising inflation, low incomes and political instability in the UK were among the factors highlighted by the OECD which contributed to its projected economic stagnation for the country.
Sunak’s ‘super deduction’ did not add to business investment
Source link Sunak’s ‘super deduction’ did not add to business investment