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2007 OECD Economic Surveys: United Kingdom 2007

image of OECD Economic Surveys: United Kingdom 2007

This 2007 edition of OECD's periodic economic survey of the British economy finds that the UK has embraced globalisation and has been rewarded with strong growth and performance, but that the near-term outlook is more uncertain, given recent financial market turbulence. Among other issues, it looks at key challenges including globalisation, raising educational achievement, improving work prospects for the least skilled, the productivity gap, and tax competition.

English Also available in: French

Tax competition: How to remain competitive?

Statutory corporate tax rates have been lowered in the United Kingdom and elsewhere, while tax bases have been broadened. This has rendered corporate tax systems more efficient. Falling tax rates are not a proof of tax competition, but consistent with it. While the United Kingdom was early in cutting tax rates and had strong tax competitiveness, others have caught up. And some countries now have considerably lower tax rates, even after the recent announcement to cut the UK statutory corporate tax rate from 30% to 28% in 2008. This chapter assesses options to preserve international competitiveness.

English Also available in: French

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