But at a time of ultra-low government borrowing costs and a recovery that’s starting to stumble, many have questioned the timing. Raising business taxes too far has always been self-defeating as it stymies further investment.”Danker’s remarks, emailed in advance by his office, highlight the growing unease among corporate leaders about Johnson’s approach toward business. Danker said Johnson and Sunak should “flip business taxation on its head” and reward investment. While Sunak introduced a special tax break on investment in March, it’s due to phase out at the end of the 2022-2023 tax year, the same time as corporation tax rises to 25% from 19%. Danker, pushing for more incentives, pointed to decline in business investment to about 10% of output in 2019 from 14.7% in 1989.
