"It's welcome news that the FTSE 100 is making record tax contributions to the UK economy"
The CBI commented on the publication of a PwC report, which estimates the total tax contribution of the 100 Group (FTSE 100) in 2017 at £82.9 billion. This represents 13% of total Government tax receipts and represents a record high since this survey began in 2006.
Annie Gascoyne, CBI Head of Economic Policy, said:
“It’s welcome news that the 100 Group is making record tax contributions to the UK economy. Recent CBI analysis also shows that, overall, British firms are filing a record tax receipts at 30% of the total UK tax take - demonstrating the importance of having a competitive corporate tax environment.
“With the UK benefitting from the lowest rate of Corporation Tax in the G20, this is helping to attract and retain business in the UK and deliver more tax revenue.
“But while the UK remains a leading global business hub, this position cannot be taken for granted. Firms will be looking for continued stability and certainty from UK policymakers on tax policy, as we negotiate our new relationship with the EU. And more immediately, all companies need the certainty of a transition deal between the UK and the EU agreed by the end of the year to avoid a “cliff edge” and to protect jobs and investment.”
The PwC study found that tax receipts in 2017 compared to 2016 saw an increase of £0.6 billion. This increase is broadly attributed to higher Corporation Tax and employer’s National Insurance Contributions.
In addition, PwC’s study found that the 100 Group supports the wider economy, employing around 6.5% of the UK workforce, investing in capital and R&D spending, as well as supporting UK businesses including SMEs through its supply chain.
See the latest CBI analysis on UK business tax contributions.