Note: Figures for 2020–21 onwards are Office for Budget Responsibility forecasts. Shaded regions show years of negative growth in real GDP. Onshore revenue includes revenue from the bank surcharge. Offshore revenue includes revenue from ring-fence corporation tax and the supplementary charge. Chart shows cash receipts (not accruals), which are available on a consistent basis for a longer period.
There is a strong case to tax business income at the same rates as employment income – if the tax base is also reformed.
There are reasons to promote entrepreneurship, but low headline tax rates on income from business are poorly targeted at that goal.