Business bosses urge PM to scrap corporation tax hike Business leaders have called on the Government to scrap a planned hike in the corporation tax rate, saying ministers should instead cut the rate to help boost the economy amid slowing growth and soaring inflation. They say the tax, which is currently at 19% but set to increase to 25% next year, should be cut to as little as 12.5%. Hotelier Sir Rocco Forte, a Tory donor, warned that the corporation tax rate rise would have “clear and damaging implications for our economy.” Sir Paul Marshall, chairman of investment firm Marshall Wace, said: “The Treasury consistently fails to understand the collateral benefits of lower corporation tax in terms of attracting global companies to the UK and incentivising employment,” adding that the tax should be cut to 12.5%. JD Wetherspoon boss Tim Martin said corporation tax hikes “threaten enterprise and deter investment, and therefore Treasury receipts,” while Punch Taverns founder Hugh Osmond described the corporation tax rise as “incredibly stupid.” Sir Philip Hampton, former chairman of Royal Bank of Scotland and Sainsbury's, said: “I do have sympathy with the Chancellor's need to raise taxation. But whether a big increase in corporation taxation is right at this time is very debatable.” Sir Martin Sorrell, founder of WPP and S4 Capital, fears that raising corporation tax and National Insurance is “probably going to have a significant negative effect on the growth of the economy,” with Phones4u founder John Caudwell also saying the corporation tax increase will hinder growth.