The UK’s international tax competitiveness 2024 update
Think tank: Centre for Policy Studies
Author(s): Daniel Herring
October 21, 2024
This report from UK think tank the Centre for Policy Studies calls for the Chancellor to focus on fundamental tax reform to stoke economic growth.
The UK ranks a dismal 30th out of 38 OECD countries in the 2024 edition of the International Tax Competitiveness Index, published today by the US-based Tax Foundation.
This extremely poor ranking – below countries like Hungary (7th), Czechia (8th), and Germany (15th) – undermines the UK’s attractiveness to investors, and the Government’s stated aim of attracting foreign investment.
Modelling by the Tax Foundation and Centre for Policy studies shows that mooted increases to capital gains tax and dividend tax, or the introduction of a wealth tax, would all inflict further damage to UK competitiveness. If all three were adopted, the UK would fall to 35th place overall – fourth from bottom of the Index.
