31/05/10
George Osborne presents his first Budget on 22 June. The water sector will be watching closely for details of changes to corporate taxation.
The Chancellor has said he will set out a 5-year road map for reform of corporation tax. The plan is to simplify reliefs and allowances and tackle avoidance in order to reduce headline rates, while protecting manufacturing industries.
The changes could have a significant impact on the water industry. It is even more capital-intensive than manufacturing, so cutting capital allowances would cost the sector a lot more than it would gain from a lower headline rate.
While there may be a case for a simpler tax system, the water industry will not be alone in its concern that the result could be higher bills for customers.
Chancellor speech at CBI Dinner 19 May
Contact: Rob Wesley
Possible link: (George Osborne speech 19 May)
