Treasury up against lower tax regimes

When the chancellor announced talks with business leaders about the competitiveness of the British tax regime on Tuesday, he described the dilemma facing large, relatively high-tax countries.

“We need to anticipate a growing problem for all governments – how to protect revenues in an increasingly global marketplace for goods and services while promoting the competitiveness of our businesses so that they can take advantage of open markets,” Alistair Darling said.