Liz Truss' bid to 'aim for growth' by cutting big business taxes will fail, study warns

Liz Truss' bid to "go for growth cutting taxes on big business profits have failed in the past and will fail again, a leading think tank warns.

Plan to scrap corporate tax hike ignores the harsh lessons of recent history – when investment has stagnated despite ultra-low rates – and is not even favored by business leaders, argues the Institute for Public Policy Research (IPPR).

Instead, it calls for a strategy that goes beyond taxes to boost investment and productivity by tackling chronic problems in housing, energy, transportation , from comp and child care.

“The corporate tax cut is just the continuation of a failed race to the bottom that has not paid off for the UK economy," said George Dibb, Head of the Center for Economic Justice at IPPR.

"Tax cuts are not a magic bullet to increase investment and growth; in fact, despite having some of the lowest corporate tax rates, business investment in the UK is the lowest in the G7.

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