Sunak warned against corporation tax increase The Prime Minister is being urged by senior Conservative backbenchers, business chiefs and economists to abandon his plan to increase corporation tax in the Spring Budget. These rises will hit many motorsport business quite hard. Rishi Sunak is looking to raise the tax from 19 to 25% but critics of the plan say it will undermine investment in the UK and also by UK businesses. Signatories to a letter to Mr Sunak include six leaders of separate Tory groups, representing some 150 MPs and raising the prospect of a growing rebellion. The letter is also signed by leading business figures, including private equity tycoon Robert Agostinelli; hotelier Sir Rocco Forte; and Wetherspoons’ founder and chairman Tim Martin. The letter warns Mr Sunak that if his proposed corporation tax hike goes ahead, companies will have “less money available to expand their activities and create wealth for the good of the country”. It added: “Many, like AstraZeneca, will relocate future investment beyond our shores. Fewer will seek to establish themselves here. For those companies that do remain – many of them small- and medium-sized businesses – increasing corporation tax by about a quarter will seriously impact their operations.”