A complete overhaul of the corporate tax system is the only way to regain the UK's position as a competitive location, it has been claimed.
The Confederation of British Industry (CBI) has warned that increasing tax regulation and changes to the system are creating an unsustainable environment for enterprise.
By introducing an 18 per cent headline corporation tax, doubling small and medium businesses' investment allowance to £100,000 and enhancing communication with other government tax systems, the CBI claims the UK could regain its competitive edge.
"Knee-jerk, retrospective change is no way to manage a tax system," commented Richard Lambert, director-general of the CBI. "The UK government should clear away the thick level of silt that has built up over time in our tax system."
The CBI also proposed that tax be calculated on existing company accounts, meaning that those in accountancy jobs no longer have to maintain duplicate sets of books.
However, the Trades Union Congress rejected the CBI's plans, claiming they were a "tax dodger's charter".
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