Nadhim Zahawi, the new UK chancellor, will review corporate tax increases
Nadhim Zhawi is the new chancellor of the exchequer. He has called for a review of the UK’s corporate tax policies, indicating that an increase of 19p to 25p next year may be reduced or eliminated.
Zahawi took over the position on Tuesday evening following Rishi Sunak’s resignation. He stated that he would examine the proposed increases in corporation taxes to ensure British companies are competitive.
Sky News spoke to him on Wednesday, saying: “I’ll look at everything. There is nothing that’s off the table. I want to be the best country in the world for investments.
He said: “I know that boards around the world make investment decisions. They’re long-term. The only tax they can compare internationally is corporation tax. I want to ensure that we remain as competitive as possible while maintaining fiscal discipline.
Zahawi also spoke with BBC in a separate interview. He said that he would be looking into other ways to ensure the economy is competitive and dynamic with European neighbours and the rest of the world.
Sunak stated last year when he declared the corporation tax increase – the first since 1974 – that higher incentives for investment would mean only those companies who fail to invest would be subject to higher tax rates.
Zahawi is a former adviser to the oil industry. He supports lower taxes and has most recently opposed a windfall oil and gas tax on companies that operate in the North Sea. Sky asked him if he was focusing on “rebuilding and growing the economy”.
In interviews with radio and TV, he stressed that spending plans, including tax cuts, must not distract from the need for reducing inflation and borrowing limits.
“The prime minister wants us to have fiscal discipline. He said that he shared his focus with him.
Sky spoke to him: “The most important thing is to keep inflation under control and be fiscally responsible. We must ensure that inflation is not continued to be fuelled. We are currently facing a global fight against inflation.”
He spoke out on LBC Radio about his concern over the sharp rise in borrowing costs. “This year, the amount of debt we will serve will be PS83bn. It was PS20bn last year. This is a four-fold increase in debt servicing.
Zahawi said, “Inflation, if allowed out of control, is deeply, deeply destructive, especially for those most in need in the society we’re trying to help.”