Analysis from the Centre for Policy Studies and the US-based Tax Foundation shows that the UK is heading in the wrong direction if it wants to retain its status as a low tax centre for inward investment and business.

The combination of the health and social care levy, increases in corporation tax and the withdrawal of the super-deduction for investment mean that by 2023, the UK is set to fall from 22nd to 30th out of 37 OECD nations on the Tax Foundation’s blue-chip tax competitiveness index.

The UK will fall from 23rd to 31st on personal taxation, and from 18th to 31st on corporate taxation – having briefly risen as high as 11th place, due to the impact of the temporary 130% super-deduction for capital investment.