Businesses have called for clarity on tax from the Labour government today as Rachel Reeves faces questions over whether she will hike capital gains rate at her first budget this Autumn.
In a new report today, accountancy firm BDO found that 70 per cent of executives are calling for more certainty in the tax regime either through a complete freeze on any business tax changes or a business tax roadmap over the next five years.
The findings come as the government fights accusations of shiftiness when it comes to its tax plans.
The Treasury has refused to rule out bringing capital gains tax to parity with income, despite Keir Starmer leaving such a commitment out of his plans during the election campaign.
In June, both Labour and the Conservatives were accused by the Institute for Fiscal Studies of engaging in a “conspiracy of silence” around the spending cuts or tax rises that would be required in the next term of parliament.
The survey, which was commissioned by professional services firm BDO and polled over 500 C Suite execs, also found bosses to believe that, of the taxes their business pays, corporation tax is most likely to be hiked by the new government.
This is despite Labour having committed to capping the rate of corporation tax at the 25 per cent at which it is it is currently levied for the duration of this parliament.
Over a quarter of respondents also earmarked taxes on energy profits or electricity generators as being likely to rise, while 26 per cent said they expect higher environmental taxes.
Paul Falvey, a tax partner at BDO, said: “Given the repeated changes to tax rates during the previous administration, businesses desperately want a return to some kind of stability and certainty.
“Many will be hoping the promised business tax roadmap will help deliver some much-needed long-term visibility to help them plan for the future with confidence.”
Asked about the reported CGT rise, a Treasury spokesman said: “We have set out the need for economic stability and we have begun fixing the foundations so we can grow our economy and keep taxes, inflation and mortgages as low as possible.”