The government will launch a discussion paper on growth today pledging reforms to corporate taxes in a bid to stem the tide of international companies leaving Britain.
The measures – which will be announced in the chancellor’s Autumn Statement, delivered today - are expected to include an overhaul of the Controlled Foreign Companies tax by 2012 and a lowering of the corporation tax rate to 10% on the proceeds of intellectual property.
It’s also predicted that the Office for Budget Responsibility will upgrade its growth forecasts for the year from 1.2% to 1.7% and revise its predictions for how many public sector job cuts will be necessary. Tax revenues are also expected to exceed forecasts by £10bn.
An HMRC commissioned survey  in August revealed that one in five large UK businesses would consider relocating abroad because of the tax system in this country.
"There is still work to be done, but before 2012 when the CFC rules are expected to be overhauled. Until then these relaxations are not only welcome but probably essential to keep the UK competitive," Mike Warburton, tax partner at Grant Thornton told the Telegraph .
Monthly accounts for SMEs
Today’s announcement will be followed by the launch of a series of forums, backed by business secretary Vince Cable, which will promote monthly accounting by small businesses.
Doing Business Together , which is backed by the British Bankers’ Association and the Federation of Small businesses, will encourage businesses to use monthly management accounts to secure finance. The campaign says that yearly audited accounts and credit references currently used by many small businesses to win finance are too historic and that monthly accounts, screened for discrepancies online, would encourage greater transparency between borrowers and banks.
There has been concern from accountants that it could reduce their income from preparing loan applications, however Cable argued it was “a very good initiative that brings together lots of different groups with an interest in small business financing, a sector where there are serious problems”.