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Drop in corporation tax is welcomed

By South Wales Evening Post  |  Posted: December 06, 2012

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A SWANSEA business leader has welcomed Chancellor George Osborne's decision to reduce corporation tax.

Julian Hilton, regional managing director for insurance broker Jelf, which runs an office in SA1, said: "The Chancellor's statement was certainly a mixed bag.

"While March's growth figures were revised downwards, there were some positives which shone through and the fall in corporation tax is definitely good news for business. The current market is certainly challenging but there are signs of good news in Wales, particularly in the manufacturing sector, especially for the businesses that export.

"However, it certainly seems that the retail, leisure and property sectors are really struggling.

"Hopefully the 1 per cent cut in corporation tax, which is due to come in April 2014, will help generate some stimulus in the Welsh economy."

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  • tellyon  |  December 06 2012, 10:27PM

    If the firms paid the tax they were supposed to then we wouldn't have to make any cuts. This economic mess is a tax dodging problem really, not a deficit problem. Why do we keep buying into this rubbish that making the super-rich corporations richer will get them to invest? There is already over £750 in cormorate reserves. They are drowning in money. The reason they don't invest is because they don't expect there to be enough demand. As the 99% get even poorer then that situation will continue to drag us down. Look at Starbucks. Their tax avoidance is becoming legendary despite their derogatory offer to cough up £20m over the next "two years".... and then what? We could do without firms like that. People will still drink coffee. The smaller family run firms might stand a chance with the big corps off the high street. They would employ just as many people and be far more likely to pay their tax. Really, the biggest enemy of small business is BIG business. We are part of a global race to the bottom. If the capitalists think that we have to drive down terms and conditions to the levels of China and India then we can expect a vast drop in living standards... That is what will happen if we are to invest these wonderful companies like Starbucks, Amazon etc. etc. Society is moving backwards. This stale economic system is a fetter on society. Despite of all our labour saving technology life will get harder and less rewarding -unless you are a member of the billionaire club of course! What is the answer: It may sound like a big move but -if we want our children and grand-childrem to have a better life than our great-grandparents had then- we had better think about taking hold of the economy and running it on democratic lines rather than leaving it all up to the chaos of the 'markets' (a euphamism for a clique of super-rich gamblers). I don't mean nationalise every corner shop, but we should nationalise the 'comanding heights' of the economy, the biggest 150 banks, companies and utilities. .. and they shouldn't be run by bureaucrats or politicians either, but democratically by committees of their working staff, trade-unions and members of the public. If we don't want our economy and the lives of our children to be just another 'chip' on the global roulette wheel then we had better take another look at socialism and how we can get it right

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  • Neathboy234  |  December 06 2012, 8:09PM

    siarad2 cutting vat will do no good. What would people do with this extra money. Save it! No good that wouldn't help the economic. Pay off their loans!. Again no help to UK PLC. Spend it!. Good idea that will help. Problem is what to spend it on. Car made in Germany, no good. Holiday in Spain, again no good. Far better to increase allowances for replacing old plant and machinery. Nice new modern plant that's the way to help us compete with the rest of the world.

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  • siarad2  |  December 06 2012, 7:02PM

    Why oh why do the gov. think industry needs boosting, what it needs is customers. Shops & factories are closing through lack of customers not investment. Investment produces income, from customers, it's why houses are not investments. The small raising of the tax threshold is hardly going to set industry on fire with orders, VAT should have been cut.

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  • Neathboy234  |  December 06 2012, 3:06PM

    I noticed yesterday that many economists said that lowering corporation tax was one of the least best ways of stimulating the economy. And of course there are so many way around paying this tax that it's all become a bit of a joke. On another note it is said that UK firms have built up reserves of over £700 billion. The problem is that they are not prepared to invest until things begin to pick up. And like in the 1930's when austerity was tried and failed, we may have a long time to wait. Well until 2015 at least.

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  • roadmonkey  |  December 06 2012, 2:53PM

    Since when is a regional MD for a national firm with a branch in Swansea considered a business leader?

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