Investors Charter – Words v Deeds

At the Global Investment Summit held in London this week, Gordon Brown spoke of “words and deeds” to encourage new inward investment and support existing investors. However, beyond the well orchestrated and slick presentation, the resulting proclamation of a new “Investors Charter” has been slammed by business leaders.

If the government genuinely wants to support inward investment, the immediate deeds should include scrapping the impending rises in personal and corporate taxation that will further erode the UK’s competitive advantage.

According to UKTI, the two most important reasons to invest in the UK are “the easiest place to set up and run a business in Europe” and “internationally competitive tax environment for foreign investors”. Presumably the UKTI webmaster will be up-dating these claims in April when the next tax hikes kick in.

It's great that politicians recognise the importance of inward investment but they must realise that they are in a position to directly influence the UK's competitive position through fiscal policies that will entice wealth-creators to locate here and stay here.