Fair dues: Rebalancing business taxation in the UK

Article

Over the last decade a substantial reduction in the effective rate of corporation tax has been accompanied by a rise in employers’ national insurance contributions. At the same time there has been increasing public focus on corporate tax avoidance, both through the use of accounting procedures to minimise tax paid in different national jurisdictions and through tax havens.

This policy paper argues for a rebalancing of the business taxation system. It sets out a series of reforms aimed at achieving a fairer burden of taxation between different kinds of businesses and taxpayers, while supporting employment, wages and investment. It proposes a fiscally-neutral increase in the rate of corporation tax, alongside a reduction in employers’ national insurance contributions; and an increase in the base for corporation tax through a simplification and reduction in reliefs and allowances. It also proposes the introduction of an Alternative Minimum
Corporation Tax in order to reduce profit shifting by multinational corporations, alongside greater support for international efforts to combat tax avoidance.

Related items

  1. Someone's hands holding a mobile phone, with social media likes and heart icons floating out of it like bubbles

    Mapping the digital publics

    How platforms shape collective politics in the UK.
  2. Scottish parliament building at Holyrood and Calton Hill, Edinburgh

    Constructive coalitions? What the election means for the seventh session of the Scottish parliament

    What do the results of the 2026 Scottish parliament election tell us about how Scottish politics is changing? What do progressive parties need to do to get back on track?
  3. A close up photograph of a polling station sign on the outside of a building

    Reimagining lawmaking: How to rebuild trust in parliament

    People feel that politics is something that is done to them, not with them. This must change.