There was a time was when Britain could proudly say that it really did have a low rate of corporation tax, according to Stephen Kingon, managing partner with accountants and management consultants, Pricewater houseCoopers.
"We like to think that we still do," he says, "but comparatively speaking, it is nowhere near as low as it used to be. More importantly, the tax base to which this low rate is applied is wider than in many other territories.
"France and Germany, for example, take half the corporation tax as a percentage of GDP compared to Britain." Mr Kingon said that the British government should examine ways of making sure that the corporate tax burden remained reasonably low. "The relatively low social security charges we have as compared to countries such as France and Belgium helps a lot," says Mr Kingon. "But our capital allowance regime is rather hit-and-miss, and many sectors - like retail - do not do at all well."
Chancellor of the Exchequer, Mr Gordon Brown, is unlikely to heed calls for increased capital allowances, except perhaps for the small business where the present higher rate of plant allowances will probably be made permanent, said Mr Kingon. The one sector where tax change is needed, he says, is electronic business. "It is not so much change, as addressing how electronic business is going to be taxed," according to Mr Kingon. Britain traditionally raises a lot of money from taxes on alcohol and tobacco - £35 billion annually at present - with everyone hit in some way, said Mr Kingon.
However, these revenues are being heavily affected by smuggling and cross-Border shopping.
Everyone is waiting to see what the Chancellor will do this time, said Mr Kingon. "On the one hand, he has the health lobby wanting more taxes on tobacco - on the other hand, being realistic, is he at the stage where higher duties are actually bringing in less money?"
Mr Chris Gibson, the vice-chairman of the Confederation of British Industry in Northern Ireland, is concerned about the impact of the climate change levy.
He is also worried about the current level of excise duty on fuel. He claims that as much as one-third of the petrol and diesel used in Northern Ireland is being smuggled across the Border.
He would also like to see the Chancellor take the opportunity to simplify the regulatory burden, particularly for small businesses, and increase spending on infrastructure.
Increased investment in infrastructure is also a priority for Mr David Boland, sales director of Acheson and Glover, one of Northern Ireland's leading suppliers of construction materials.
"We would like to see the schools investment programme originally announced by the Northern Ireland Assembly given the go-ahead," he said. Mr Boland would also like to see the Chancellor announce measures which would provide more assistance for the hard-pressed farming industry.
The chairman of the Federation of Small Business, Mr Gwyn Jones, said the Chancellor had promised a good budget for small businesses.
"I only hope he's as good as his word," Mr Jones said. "Like many people, we're very concerned about the price of fuel. The difference between North and South is having a devastating effect on filling stations in the Border area."
