Chancellor unveils plans for business-Government forum

A new business-Government working group will be established to examine the competitiveness of the corporate tax regime, the Chancellor has announced.

Speaking at a conference on ‘New Financial Frontiers,’ Alistair Darling revealed his intention to develop a tax forum to look at the long-term challenges facing the UK tax system.

The group will discuss ways in which the tax system can provide the long-term certainty that multinational companies need in the face of increased competitiveness and other global challenges facing both business and Government.

Outlining plans for the proposed new working group, Darling said: ‘Tax is one element of the strong business environment which makes the UK competitive at a global level. The UK corporation tax rate is one of the lowest in the G7.

‘I am determined that we do what is necessary to remain one of the world's best places to do business - and critically to ensure that we maintain our strong and resilient economy and our position as the world's leading financial centre,’ he continued.

Richard Lambert, Director-General of the Confederation of British Industry has described the initiative as ‘a welcome development’ and an ‘encouraging’ step forward for business-Government relations.