Another climbdown from Darling

Another kicking from big business, another climbdown for Alistair Darling. After the CGT and non-dom fiascos, the latest is over proposed changes to corporation tax. Businesses were especially worried about the plan to make foreign profits taxable – whether or not they were repatriated – and many had threatened to leave the country. However, according to the Times, the Treasury's proposals have now been watered down – they've “moved a fair way from where [they] were last year”.

The problem for Darling is that this might not make the slightest bit of difference. For starters, it's what comes before a climbdown that often sticks in the mind, and – for that reason – business still doesn't think much of our Chancellor. What's more, the general issue with UK corporation tax remains – the 28 percent base rate is still higher than in competitor countries. It's largely for that reason that the 'Taxodus' has already begun. And it's largely for that reason that it looks set to continue.