Business investment in the UK has fallen to the bottom of the G7 group of wealthy nations, despite the tax cuts. Ministers are preparing for £30bn of giveaways targeted at companies and high income workers. These cuts were put in place to help drive up economic growth towards a target rate of 2.5% a year. However, the IPPR said slashing the headline rate from 30% in 2007 to 19% in 2019, orchestrated by the former chancellor, George Osborne, did not spur higher private investment or faster economic growth. Studies have shown corporation tax cuts used by successive Conservative governments have had little bearing on business investment and economic growth, undermining the argument of free-market Tories that such tax breaks pay for themselves. Urging the government to consider alternative ways to increase investment and economic growth, the left-wing thinktank said targeted tax cuts for companies and a commitment to an industrial strategy would have a bigger impact.
What plans would you put in place for boosting investment in the UK and why do you think these tax cuts are not working?