Roger Williams, chief executive officer of the United Kingdom Warehousing Association (UKWA), has welcomed the reduction in the headline rates of corporation tax, announced in the budget. It will help in attracting international companies to do business in the UK, and by 2014 we will have one of the lowest rates in the G20 (24%), he said.
Williams continued: While the increase in the VAT rate came as no surprise, the implementation date of 4 Jan 2011 will allow companies to plan. However, we can expect a significant initial increase in the inflation rate, which may impact on our members in the first quarter of the year. Most Euro countries have increased VAT, and our new rates bring us closer to their rates (Germany 19% and France 19.6%)
"Overall, I think the budget was perhaps better than we feared for our sector, but it reinforces the fact if, indeed, it needed reinforcing - that we face several hard years where high professional standards, lean operations, innovation and a lot of hard work will remain at the core of our business models."