Current high levels of taxation are endangering the UK manufacturing industry, according to a new report from the Engineering Employers Federation (EEF).
The report warns that while the US and most large European countries have been lowering the business tax burden, businesses in the UK are set to pay an additional £2.2bn in corporation tax in 2005/06.
The organisation says that the negative impact of the tax regime on UK competitiveness is second only to the impact of regulations.
Martin Temple, director-general of the EEF, said, 'Whilst government is actively promoting innovation and improved skill levels, the rising cost and complexity of business tax is preventing companies from taking full advantage of this to improve their performance'.
'Our long-held competitive advantage on tax is starting to erode', he warned.
Date:17 October 2005
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