Current circumstances require a combination of carrot and stick. The government should announce a temporary increase in corporation tax, putting it up to a punishing 50% for a strictly limited period, say three years. Then it should announce that 150% of all investment within those three years can be written off against tax.
But this would increase tax avoidance so it cannot be allowed to happen.
Recall The Murph\’s analysis of nPower? The bastards invested a lot of money in new plant and then had the temerity to claim the investment allowances. This resulted in no tax being paid upon their operating profits: tax avoidance, clear as day, obviously.
Tsk, doesn\’t everyone know that the retired accountant from Wandsworth is the ultimate arbiter of how much tax should be paid?