Campbell takes case for fairer and simpler taxes to the city

7.07.00am BST (GMT +0100) Thu 6th Jul 2006

Sir Menzies Campbell took his case for fairer and simpler taxes to the London Stock Exchange today - in a major speech to a City audience, hosted by independent liberal think tank CentreForum.

He committed the Liberal Democrats to reaching out to British business and industry and outlined the potential benefits of simplifying business taxes.

Sir Menzies said:

"No serious political party with ambitions to reach government should fail to take account of the needs of British business and industry? Business can inform debate and lead to better politics and, in turn, to a more prosperous society. There should be no doubt of our party's willingness to engage with the City - and with business and industry beyond it."

Following on from his major announcement on personal taxation last month, Sir Menzies highlighted the potential benefits of simplifying business taxes. He said:

"Simplification of the business tax system must be a top priority. We cannot have a tax system that only tax accountants can understand? We need a simpler Corporation Tax structure and there are a number of tax reliefs available to companies which, if removed, would allow the Treasury to cut corporation tax by a full percentage point?I can see the conceptual merit in a general Anti-Avoidance Rule which would allow for a massive simplification for businesses, cutting hundreds of pages out of the tax code? It is time for the Treasury to look at an option for small businesses to be taxed on net cash flow not profit. It would be broadly revenue-neutral. It would save on expensive accounting procedures and it would better reflect small business' ability to pay corporation tax?All future tax legislation should be subject to pre-legislative scrutiny."

Sir Menzies also underscored his opposition to the present extradition arrangements with the United States and argued that a framework and legal certainty and equitable treatment to thrive.