Here is my speech:
Plain-English Presentation Script Introduction: Hello everyone, thank you for joining me today. [pause] Before we start, let me ask you this: What if I told you that raising taxes could sometimes make the government less money? [pause, look up] It sounds odd, right? Well, that's what I'm here to explain. [pause] Today, I’ll break down a tricky topic — business taxes — in simple terms. [pause] I’ll use relatable examples to explain how tax rates affect government income, businesses, and fairness. [pause] By the end, you'll have a clearer understanding of why this matters to you. [pause, look up] Let’s start with a simple idea called the water glass effect. [pause]
Imagine pouring water into a glass. At first, adding more water fills the glass, giving you more to drink. [pause] But if you keep pouring, the glass overflows, and you end up wasting water. [pause, look up] Taxes can be like that. Raising business taxes can increase government income, but if taxes are too high, businesses may react — like moving their money to other countries or cutting back on spending. [pause] Let me give you an example. [pause] Imagine a bakery that earns £100,000 a year. [pause]
If the government charges a fair tax rate, say 20%, the bakery pays £20,000 in tax. [pause] But if the tax rate jumps too high — let's say 50% — the bakery owner might think, "Why should I stay open here when I can move to a nearby country that charges less tax?" [pause, look up] If they close or relocate, the government could end up collecting no tax at all — a bit like tipping your glass and losing all the water. [pause]
Big global companies are especially good at this. [pause] Because they operate in different countries, they can shift their profits to places with lower taxes. [pause] A new rule called 'Pillar 2' tries to stop this. [pause] Think of it like you and your friends agreeing that no one will sell lemonade for less than 50p a cup — it stops people from undercutting each other. [pause, look up] A tax advice company called UHY warns that without this kind of teamwork between countries, raising the UK’s tax rate could backfire, as businesses might move their money to countries with lower taxes. [pause] While UHY’s warning is useful, remember they sell advice to businesses, so their view may Favor their own services. [pause] Now let’s talk about investment. [pause]
Research from Oxford University shows that if you increase business taxes by just 1%, investment from overseas could fall by about 2.5%. [pause] Imagine you’re choosing between two gyms — if one suddenly raises its membership fee, you might decide to join the other one instead. [pause] That’s similar to how businesses react to higher taxes. [pause]
However, this study mostly looks at older data, so with new global tax rules in place, businesses may not leave the UK as quickly as before. [pause, look up] It’s important to remember that taxes aren’t the only thing businesses care about. [pause] Things like good transport links, a skilled workforce, and strong legal protections all play a role in whether businesses decide to stay or leave. [pause]
So while tax rates matter, they’re just one part of the bigger picture. [pause, look up] Raising taxes can also slow down the economy in the short term. [pause] When businesses pay more tax, they might cut back on hiring, wages, or spending — like knocking over the first domino in a chain reaction. [pause] For example, if a manufacturing firm pays more tax, they might delay buying new equipment, which affects their suppliers, who may then struggle to keep staff employed. [pause]
However, there’s a positive side too: if the government spends that extra tax money on things like schools, hospitals, or transport, it could improve the economy in the long run by making the country more productive. [pause, look up]
The IPPR group suggests that raising the global minimum tax from 15% to 21% could bring in an extra £14.7 billion for the UK. [pause] That’s a big claim — but it assumes businesses won’t change their behaviours, which they often do. [pause] Some experts believe lowering business taxes encourages growth. [pause] Research from Oxford University supports this idea, but those findings are based on older data when countries were racing to offer the lowest tax rates. [pause] Now that countries are moving toward similar tax rates, the UK may have more freedom to raise taxes without scaring businesses away. [pause, look up]
There’s also a way to reduce the downsides of higher taxes: investment tax breaks. [pause] Imagine a shopkeeper facing higher taxes but who can reduce their tax bill by spending money on new shelves or equipment. [pause] Investment tax breaks work like this — they let businesses reduce their tax bill when they spend money on improvements. [pause] Here’s a real-life example: imagine a construction company. [pause] If they know they can claim a tax break for upgrading their machinery, they may decide to replace their old equipment with newer, more energy-efficient tools. [pause]
Not only do they pay less tax, but they’re also improving their business, reducing energy costs, and supporting jobs for the workers who manufacture the new equipment. [pause, look up] We also need to ask: Who actually pays for tax increases? [pause]
While businesses are the ones paying the tax, they often pass the cost onto others — by raising prices, cutting wages, or reducing staff. [pause] Finally, there’s the issue of fairness. [pause] Big global companies are often better at avoiding taxes than smaller local businesses. [pause] The IPPR says that raising business taxes — along with stricter rules to stop avoidance — could make the system fairer. [pause]
Conclusion: So, what’s the key takeaway? [pause, look up] Business taxes are like seasoning food — too little, and you miss out on flavor; too much, and you ruin the dish. [pause] The trick is finding the right balance. [pause] By combining fair tax rates, smart tax breaks to encourage investment, and strong rules to stop tax dodging, the government can raise more money without driving businesses away. [pause]
In the end, tax policy is all about balance — making sure businesses contribute fairly without pushing them away. [pause, look up] And if done right, higher taxes can provide much-needed funds for better schools, hospitals, and services that benefit us all. [pause]
Thank you for your time. [pause, look up] I'm happy to take any questions.