A new report from CBI has indicated that one of the highest income taxes in the world and the FSA regulations are deterring overseas businesses from investing in the UK. This is very much putting the country’s economic recovery in danger.
The new report “Making the UK the best place to invest” brings together the testimonies of 400 CBI members which have been collated through opinion polls and one-on-one interviews. It also suggests that the desirability of the UK as an investment opportunity has seriously declined over the past 10 years. This isn’t being helped by the competition from overseas which is increasing all the time.
The burden of the FSA regulations is seen as an ‘investment blocker’ so say the CBI, who also cites the UK as 89th out of 139 countries in the World Economic Forum. This is the same ranking as Nigeria. Due to the continuing reduction on spending in the consumer and public sectors, business investment is seen as a vital component of the Country’s recovery.
The report also says that where bank taxes are concerned, in particular Solvency II and Basel II, the UK is out of sync with its competing countries and is risking its advantage of being a world leader in the insurance and banking sectors. The European CE of Fidelity Int. Robert Higginbotham is quoted in the report as saying that Business jobs and opportunities are going overseas, and the Government must have a look at why that is.
The report carries on by saying that International firms are heavily influenced by the tax regimes of countries they are looking to invest in, and the 50% top rate income tax and high corporation tax are both acting as deterrents.