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Campbell plans tax cuts for business

Ben Russell,Political Correspondent
Wednesday 05 July 2006 19:00 EDT
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Sir Menzies Campbell will attempt to woo the City today by floating the idea of significant cuts in business taxes in return for the abolition of complex tax reliefs.

He will use a speech at the London Stock Exchange to lay out the Liberal Democrats' stall as a business-friendly party, arguing for a "massive simplification" of corporation tax.

Sir Menzies will tell an audience of leading City figures that he could offer a penny off corporation tax by abolishing a string of major tax reliefs.

He will say: "We cannot have a tax system that only tax accountants can understand. We need a simpler corporation tax structure and there are a number of tax reliefs available to companies which, if removed would allow the Treasury to cut corporation tax by a full percentage point.

"I can see the conceptual merit in a general anti-avoidance rule which would allow for a massive simplification for business, cutting hundreds of pages out of the tax code."

"Sir Menzies will argue: "No serious political party with ambitions to reach government should fail to take account of the needs of British business and industry. Business can inform the debate and lead to better politics, and in turn to a more prosperous society."

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