Corporation Tax: Receipts

Oral Answers to Questions — Treasury – in the House of Commons at 12:00 am on 18th July 2017.

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Photo of Jeremy Quin Jeremy Quin Conservative, Horsham 12:00 am, 18th July 2017

What effect the reduction in corporation tax rates has had on receipts from that tax.

Photo of Mel Stride Mel Stride Financial Secretary to the Treasury and Paymaster General

Since 2010 the headline corporation tax rate has been cut from 28% to 19%. Despite that, onshore corporation tax receipts have increased by more than 50%, from £36.2 billion in 2010-11 to £55.1 billion in 2016-17.

Photo of Jeremy Quin Jeremy Quin Conservative, Horsham

According to KPMG, we have the second-most competitive tax regime anywhere in the G7. Does my hon. Friend agree that that encourages businesses to locate here and boosts our tax receipts?

Photo of Mel Stride Mel Stride Financial Secretary to the Treasury and Paymaster General

My hon. Friend is entirely right. The OECD has made it very clear that corporation tax increases are the most harmful tax increases for economic growth. By keeping business taxes down, in 2015-16 we saw a record number of inward investment projects creating more than 1,600 jobs per week.