James Dyson, the founder of electronics company Dyson, has slated the government’s decision to raise corporate taxes in April, claiming the move will cause businesses to move abroad.
In the November autumn statement, Jeremey Hunt outlined corporation tax would rise from 19% to 25% in April, as part of public efforts to plug the UK’s “fiscal black hole” left over from a period of intense spending during the coronavirus pandemic.
However, according to OECD 2022 figures, the UK's rate of Corporation Tax will still be lower than both the US and France on 25.8%, as well as most other G7 countries, with Canada at just over 26%, Italy at almost 28%, Japan and Germany close to 30%.
Entrepreneur Dyson, best known for his vacuum cleaners, slammed the decision, saying: "This is as short-sighted as it is stupid.
“In the global economy, companies will simply choose to transfer jobs and invest elsewhere," he wrote in the Telegraph.
Dyson Group previously relocated from the UK to Singapore in 2019, ahead of the Brexit deadline.
Dyson contended “growth” had become a “dirty word” under PM Rishi Sunak’s leadership and urged the government to "incentivise private innovation and demonstrate its ambition for growth".
Minister Michael Gove, currently Levelling Up Secretary, responded by saying the government would “unlock the animal spirits of the economy,” suggesting its reforms would in fact incentivise growth.
"If we are being accused of inertia, I think it's important that we stress the energy at which we are pursuing smarter regulation in a variety of different ways that will help enterprise," outlined Gove when the points were put to him on an LBC radio show.
Britain’s tech sector saw the highest growth among its European counterparts last year, becoming the third in the world to surpass a total value of £1trn after the US and China.
The collapse of battery startup Britishvolt has caused concern in the sector, however, with the government now launching an inquiry into the feasibility of British electric vehicle production and manufacturing as a result.