David Gauke

David Gauke @DavidGauke

If the Chancellor does decide to focus on corporation tax, the more likely option for him would be to extend the super-deduction - currently in place for 2 years. This is a policy with which Rishi Sunak is associated. /6 — PolitiTweet.org

David Gauke @DavidGauke

But assuming that there is scope of cuts in business taxes, would the Chancellor choose the CT rate? Again, I'm sceptical. Politically, the most popular business tax to cut would be business rates (although Treasury officials will be sceptical about the economic benefits). /5 — PolitiTweet.org

David Gauke @DavidGauke

And, even if there is a better than expected economic performance, will there be scope for tax cuts? The pressures on public spending will be immense. From a Treasury perspective, maintaining current spending plans looks to be ambitious. /4 https://t.co/hh8W2MrtTf — PolitiTweet.org

David Gauke @DavidGauke

.. I doubt that cutting the CT rate would be a priority. If an economy is growing well, the pressure to prioritise business tax is reduced ('business is doing fine, they don't need it'). If, late in a Parliament, there's room for tax cuts there are more voter-friendly options. /3 — PolitiTweet.org

David Gauke @DavidGauke

The argument is that the economy might grow faster than the OBR expects, resulting in additional tax receipts so the CT increase isn't necessary. There's a lot of uncertainty about the economy's performance & it's quite possible we outperform OBR forecast but even if we do... /2 — PolitiTweet.org

David Gauke @DavidGauke

A few people have speculated that - in the end - the Government won't increase the corporation tax rate to 25% in 2023. Amongst those people - rather surprisingly - is the Business Secretary. Here's a quick thread on why (unfortunately) it will happen. /1 https://t.co/pkp7u0YsSj — PolitiTweet.org

David Gauke @DavidGauke

Another weekend with a little more free time than I was expecting. — PolitiTweet.org

David Gauke @DavidGauke

This is good news but worth noting that a day later it has been announced that the US is suspending tariffs on EU products, too. The search for a tangible trade benefit from Brexit continues. https://t.co/ia1rfUOuLI — PolitiTweet.org

David Gauke @DavidGauke

RT @londonvinjamuri: The appeal of the unicorn has been drastically underestimated. https://t.co/CPq8wfsDwc — PolitiTweet.org

David Gauke @DavidGauke

On the subject of the super-deduction, I would be fascinated to know what assessment HMT has made of how much of the £25bn cost is deadweight cost - investment that was going to happen anyway (some of which will have been brought forward, as the OBR says). — PolitiTweet.org

David Gauke @DavidGauke

He's optimistic about the short term impact of the super-deduction but that the evidence suggests that 'there may be significant effects of investment incentives in good times, these effects are much weaker in times of greater uncertainty' - like now. — PolitiTweet.org

David Gauke @DavidGauke

Interesting from @devereux_mike on the corporation tax rate hike. 'The rise in the Effective Marginal Tax Rate in 2023 is likely to depress investment by as much as 20% relative to the pre-Budget position'. Ouch! https://t.co/R8X30420og — PolitiTweet.org

David Gauke @DavidGauke

RT @ce_pickles: Love this. A panel that thinks about the big issues. & appreciated @DavidGauke bringing back the call for a 'long-term eco… — PolitiTweet.org

David Gauke @DavidGauke

RT @reformthinktank: A HUGE thanks to @DavidGauke, @dsmitheconomics and @Miatsf for joining us today to dissect #Budget2021. Fear not if… — PolitiTweet.org

David Gauke @DavidGauke

RT @EmporersNewC: Five years later and this is still not a small point of detail. https://t.co/jHiv5CwCBY — PolitiTweet.org

David Gauke @DavidGauke

RT @MrRBourne: Good summary! https://t.co/wlFygsA6tH — PolitiTweet.org

David Gauke @DavidGauke

RT @GavinBarwell: Yesterday's Economic & Fiscal Outlook from @OBR_UK says Brexit deal "has involved more short-term disruption to UK-EU tra… — PolitiTweet.org

David Gauke @DavidGauke

RT @HelenMiller_IFS: If anything, we’d want a higher tax rate on smaller companies because they are less likely to be internationally mobil… — PolitiTweet.org

David Gauke @DavidGauke

@Simon_Nixon CT rates not as important as access to foreign markets but they still matter and something the government can control. Sends an important message. But yes, I agree it’s not clear what our model of growth will be. — PolitiTweet.org

David Gauke @DavidGauke

Unlikely that we’d see a ‘step change’ increase in business investment at the same time as the country was plunged into Brexit uncertainty. — PolitiTweet.org

David Gauke @DavidGauke

RT @DavidGauke: At a time when Brexit makes the UK a less attractive location for business investment, increasing the corporation tax rate… — PolitiTweet.org

David Gauke @DavidGauke

Those who point out that business investment has not been strong in recent years following the reduction in corporation tax rates should also acknowledge that the 2016 referendum result had a deeply damaging impact on business investment. — PolitiTweet.org

David Gauke @DavidGauke

RT @julianHjessop: Beware the argument that the hike in corporation tax is OK because 'only big companies will pay it'. Big companies are… — PolitiTweet.org

David Gauke @DavidGauke

RT @IainDale: CROSS QUESTION IS BACK ON @LBC AT 8pm! Listen here https://t.co/R4SUnAZTnv Watch here https://t.co/Nxu20vGHDe With @lione… — PolitiTweet.org

David Gauke @DavidGauke

RT @ipaperviews: 'The disadvantages of Brexit mean we have to try even harder to attract business investment. Raising the corporation tax r… — PolitiTweet.org

David Gauke @DavidGauke

RT @reformthinktank: While you're here. Don't forget to tune into our analysis of 'the good, the bad and the what now?' with @DavidGauke… — PolitiTweet.org

David Gauke @DavidGauke

At a time when Brexit makes the UK a less attractive location for business investment, increasing the corporation tax rate is a mistake. Me for @theipaper @ipaperviews. https://t.co/NqaH9atUVs — PolitiTweet.org

David Gauke @DavidGauke

@rcolvile @GeorgeWParker Don’t. — PolitiTweet.org

David Gauke @DavidGauke

RT @reformthinktank: 📅 #Budget2021 event Don't forget to tune into our analysis of 'the good, the bad and the what now?' with @DavidGauke… — PolitiTweet.org

David Gauke @DavidGauke

RT @RaoulRuparel: Concerning picture & one likely used by those lobbying against corporation tax increase. Stalling business investment/spe… — PolitiTweet.org