Enhancing UK tax policy: how to stimulate business investment and economic growth

Central to Labour’s mission for governing is kick-starting economic growth. The Government wants more people in good jobs higher living standards and productivity growth in every part of the UK.

In her first Autumn Budget the new Chancellor asserted that the only way to achieve economic growth is to ‘invest invest invest’.

However with the well-publicised constraints on public finances the Government has also been clear it is relying on private investment to deliver its ambitious growth agenda. The Government wants to capture a greater share of internationally mobile investment in strategic sectors and spur domestic businesses to scale up growth.

Deployed properly tax policy can be an incredibly effective tool in encouraging such investment. However there is often little understanding about how large businesses make investment decisions and therefore...