UK SMEs call for income tax reduction and abolition of corporation tax to fuel recovery

Rishi Sunak

The government must cut income tax, abolish corporation tax and cut VAT and business rates to fuel a post-Covid “super-recovery”, a group representing family-owned firms has said.

The Independent Business Network has called for £150 billion of tax cuts, £70 billion of which should be permanent, to stimulate growth.

Quantitative easing should be abandoned and perpetual “Covid recovery bonds” issued in its place to finance the recovery, the group added.

“The UK is at an economic crossroads between prosperity and long-term relative decline. It is vital it chooses the right path,” John Longworth, chairman of the network, said. “This package sets out a clear agenda to allow family owned and run businesses . . . the cover they need to drive us out of this economic Armageddon.”

The proposals include a five-point plan that would require a two-thirds parliamentary majority for any further lockdowns and MPs to be presented with a cost-benefit analysis of the impact of social restrictions, including on other health problems.

The pandemic had demonstrated that the NHS needed to be “properly funded”, the network said. An extra £37 billion should be raised in national insurance and ring-fenced for the NHS.