Date
26 Feb 2024Category
TaxUK tax policies are restricting business growth and innovation, according to the Azets Barometer.
With less than two weeks before the Chancellor presents the Spring Budget 2024, the Azets Barometer January 2024 survey reveals average scores of just below the neutral mark of 5 on a scale of 1 to 10 related to the UK tax regime's ability to strongly promote (10) or inhibit (0) in key areas including business growth (4.7), innovation (4.8), sustainability (4.7), and the attraction and retention of talent (4.7).
The research suggests that, while not overly harmful, the prevailing tax environment isn’t significantly aiding businesses. The score is driven largely by smaller businesses that feel more inhibited than enterprise firms.
There is a significant disparity between the lower and upper mid-market, as businesses with a £10m-£49.9m turnover view the tax regime as broadly neutral, while those with a £50m-99.9m turnover are the most positive, with an average score of 6.4 for business growth.
Praveen Gupta, UK Head of Tax at Azets, emphasised the need for a progressive tax system that benefits all businesses and promotes growth and investment in critical areas such as innovation and sustainability initiatives.
He said: “Simplifying incentives, taxes, and regulations is essential to create a more competitive landscape that rewards entrepreneurship and ambition. R&D tax credits, for example, are a key driver of innovation, but the scheme is in chaos. Businesses are paying more tax than ever, yet there is an obvious correlation between tax, regulation, and economic growth, and this ought to be a priority for this Government and the next.”
If you have any questions in relation to the Azets Barometer’s findings or on any tax matters, please get in touch with a member of our specialist team or your usual Azets advisor.
View key findings and explore the full survey results on the interactive dashboard at azets.co.uk/azets-barometer.
