Treasury has provided the following answer to your written parliamentary question (11537):
Question:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect of the (a) windfall tax on oil and gas producer profits and (b) planned increase in corporation tax on the UK’s position in global league tables of the best places to do business. (11537)
Tabled on: 01 June 2022
Answer:
Helen Whately:
The UKās oil and gas ring fence tax regime balances attracting investment with ensuring a fair return for the nation.
The Energy Profits Levy is an additional, temporary tax which reflects the extraordinary global context. It will raise around Ā£5 billion over the next year. The OBR will take account of this policy in their next forecast.
The UKās rate of Corporation Tax is currently 19%.
To balance the need to raise revenue with having an internationally competitive tax system, the Chancellor announced at Spring Budget 2021 that the rate of Corporation Tax would increase to 25% from April 2023, after the point at which the economy is expected to recover to its pre-pandemic level. 25% is the lowest rate of tax in the G7.
The answer was submitted on 13 Jun 2022 at 13:47.
JR ResponseĀ Ā The Minister does not tell us what impact a 31% increase in the corporate tax rate will have, and omits the possibility that the windfall tax on oil and gas will run for three years, not just one. These changes must have an adverse impact on investment.
June 16, 2022
Good morning.
But the government is already taxing us to the eyeballs ! As I have said before, where is all this money going ?? That’s my question to the Chancellor.
Off topic but relevant. I learn today that the US Central Bank has raised US interest rates by 0.75%. This could very well mean that UK interest rates could be going up, a further squeeze on already hard pressed pockets.
At this rate few will own anything having been taxed and priced out of the market.
June 16, 2022
Yes, let Labour’s client state now at present being ably run by the Tory government raise more revenue through higher taxes on the private sector rather than slashing Socialist State spending to cut down on waste and parasitism that now infects the entire body politic
Any Tory MP who refuses to condemn Labour’s political construct that now controls the entire nation should step down and declare themselves independent. They are now only reneging on their own principles for personal advancement but reneging on their promise to those who elect them
The interests of the Labour and Tory parties are IRRELEVANT
June 16, 2022
Stranger and stranger…
June 16, 2022
+many
Spot on!
June 16, 2022
This is why Iāve sold all my long term UK based investments and reinvested in markets with governments which arenāt out to destroy prosperity and business profits. I suspect there are more and more voters doing the same thing.
June 16, 2022
You should have followed Sir Johnās advice on 03/11/2017 much sooner.
June 16, 2022
Another fudge.
Pleased you are putting in the answer yourself indicating you are aware of the facts, even if they are not.
Clearly they have no shame in trying to spin answers, simply disgusting behaviour really from a so called public servant.
June 16, 2022
OBR workers are not paid according to the accuracy of their forecasts.
If they were, they might not afford to eat.
June 16, 2022
Tax and piss down the drain, as Lifelogic often says.
June 16, 2022
It’s a pity, that all those exporters who have gone bust thanks to your brexit don’t pay any tax at all now, isn’t it?
June 17, 2022
Did they go bust because of brexit or really because they were killed by two years of covid shutdowns.
June 16, 2022
Just following WEF instructions. The country is heading for recession so increase corporate and personal taxes
It’s from the same handbook as increasing windmills leafs to higher energy costs and unreliable supply.
It doesn’t matter if you’re a billionaire.
June 16, 2022
OBR forecasts are often misleading worthlessness.
If OBR workers were paid according to performance accuracy, they would not afford the fuel to fuel to feed themselves.
June 16, 2022
25% isn’t the lowest rate in the G7. Global multinationals operating in the G7 have preferential deals (also called creative accounting) that allow them to pay 0%.
June 16, 2022
We can’t be competitive against the G7 though John, oh no that won’t do. We’ve all got to be matching, other than Ireland of course who doesn’t have to comply with EU tax rules, NATO % contributions etc, its no wonder Scotland wants what Ireland gets.
June 16, 2022
This āwindfall taxā appears to please no one.
The greencr*ppers seem to think that it will help the fossil fuel firms to reinvest in new discoveries and normal people see it as hampering and possibly disincentivizing them.
Not to mention pension funds!
The tax itself, like most things now, seems to be an over-emotional sort of legislation. Why canāt businesses benefit from āgood luckā?
Itās not faaair š
We iz all Marxist now!
June 16, 2022
Sir John, yesterday you published Jon Glen’s reply to your intervention about the tax burden. His response included reference to the super deduction. While this is a good tax incentive, it is absurd to think that businessmen are going to be tempted by a short-term lollipop, knowing that they are about to be clobbered by a huge increase in corporation tax. Today you publish an answer which is NOT an answer, as it does not actually give you what you asked for. The government refuse to acknowledge, or even consider the possibility, that their tax increases are deterring investment. You rightly state: “These changes must have an adverse impact on investment.” Well, YES they have, and here is your proof: https://www.uktech.news/news/government-and-policy/suank-super-deduction-business-investment-20220610
The report at this link shows that the super deduction has FAILED to increase investment: “data first analysed by The Financial Times has shown that as of now, more than one year after the tax plan came into effect, business investment has failed to increase.” It goes on to say: “The data from the ONS has shown that business investment in the first two quarters of this year is 9% lower than pre-pandemic levels (the last quarter of 2019)”. So there you have it: Stupid Sunak’s policy has failed, because the treacherous socialist does not understand that his massive tax increases are DESTROYING business confidence and investment. What are you going to do about this? Anything effective?
June 16, 2022
This superdeduction is a short term sop. Only useful against already declared profits, so it won’t put money in the pockets of start-ups which are forking out cash. Then if you make a profit it’s all pulled back in CT. No way out via ER now either.
Rather as John Lennon said, when he was broke nobody would sell him a guitar. Once wealthy, people couldn’t throw enough free guitars his way.
June 16, 2022
Sir John, today you Tweeted: “Good to see the government now backs plans to grow more of our own food.” Err, but it DOESN’T. It says it wants more food to be grown, but it ISN’T BACKING THIS UP with any significant investment. All we ever get from the government is talk, but talk is cheap and what we need is MONEY, and LOTS of it. For years I have been saying to you here, in these columns, that the government needs to put TENS OF MILLIONS OF POUNDS into robotic crop pickers and vertical farming. This needs to be seen as a national EMERGENCY. I am pleased to see that you agree, and your Tweet continues by saying: “It needs to get behind more mechanisation and new growing methods for fruit and veg to make it easier to pick.” This is precisely right, but Useless Eustice isn’t listening, is he? Is there nothing you can do? Are there no other backbenchers who agree with you on this?
June 16, 2022
I watched last night the latest episode in, Harry’s Farm (YT) in which he says much the same thing. He also points out that the government seems to be rolling back on its rewilding project and wants farmers to grow things like tomato’s.
Government policy in all departments is all over the place.