A company boss has called for Labour to bring in a 25 percent “super-deduction” tax break to encourage investment in a key sector.
Graham Smith, head of customer success at cybersecurity firm OryxAlign, said Chancellor Rachel Reeves’ recent statements about encouraging economic growth overlooked the “critical issue” of online security.
He told Express.co.uk: “While Rachel Reeves’ recent statement to Parliament focused on improving stability and fostering economic growth, it did not address the critical issue of cybersecurity.
“This is particularly concerning given that Science Secretary Peter Kyle has recently highlighted the UK’s significant vulnerability to cyber threats and the need for improved national resilience.”
Mr Smith set out an ambitious plan for a generous tax break to stimulate the cybersecurity industry.
He said: “The Government should consider introducing a ‘super-deduction’ tax incentive for UK businesses investing in cybersecurity solutions.
“This incentive could provide a substantial tax break, such as 25p off for every £1 invested. Such a measure would encourage businesses to prioritise cybersecurity spending, strengthen national cyber defences and reduce vulnerabilities in critical sectors, including healthcare.”
He encouraged Government planners to challenge their thinking about how to promote economic growth.
The expert said: “It is crucial to challenge the assumption that economic growth and stability can only be achieved through tax increases and spending cuts.
“Investing in cybersecurity infrastructure can mitigate the costs associated with cyber attack downtime and reduce financial losses, ensuring smoother economic operations.”
Chancellor Rachel Reeves recently said during a media interview that there may be tax increases to come soon.
Graeme Hills, head of tax at Duncan & Toplis, told Express.co.uk this could include changes to capital gains tax and inheritance tax.
He said: “These are two taxes that we haven’t seen mentioned at all in the Labour manifesto, so it was perhaps shouting volumes by what it didn’t say.
“For those in the basic income tax band, capital gains tax is currently 10 percent, and it’s 20 percent for those on higher rate income tax.
“We haven’t seen this go up in recent budgets, so we could see this increase this time around – it’s a tax that many people are monitoring closely at the minute.
“If people have assets they’re looking to dispose of, do this sooner rather than later so you can crystallise the current rates.”
Turning to inheritance tax, he said: “When it comes to business reliefs, I would be surprised if there are any major changes to these.
“The fundamental idea of passing down a family business is very attractive and it would be difficult to move away from that.
“However, other reliefs for individuals might well be tweaked and changed in the background. For those wanting to plan ahead and put themselves in the best tax position, my ultimate advice would be to make use of a tax adviser.
“Tax is necessarily complex and the current legislation is immense, so it’s important that you speak to someone who has a thorough understanding of it.”
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