Originally written by Anna Jordan on Small Business
Labour became the third party to release it General Election manifesto on 21 November.
The document has had a mixed reaction from the public, industry experts and organisations.
One of the most contentious policies is the rise of corporation tax to 26pc (it will be a lower 21pc for businesses with an annual turnover under £300,000). The tax would be staggered over the next three years. It’s hoped that this will raise £23.7bn within five years, according to the funding section in Labour’s manifesto.
To the contrary, figures show that slashing corporation tax in recent years has boosted Government coffers. It might not be that clear-cut, though.
The Office for Budget Responsibility (OBR) states that the cut in corporation tax from 28pc in 2009-10 to 19pc in 2017 boosted revenue to £57.6bn from £40.1bn in 2009-10. However, the Institute of Fiscal Studies (IFS) shows that the reduction in headline rate since 2010 has cost £13bn.
The IFS said: “Corporation tax revenue has increased since 2010 even while the headline rate has been cut. But that does not mean that rate reductions have increased revenue.
“Much of the rise in revenue since 2010 is simply recovering from the effects of