Corporate Tax Rates
The UK Government has reduced Corporation Tax levels to encourage business development and investment. According to the latest data, UK Corporate Tax rates are among the lowest in Europe when compared to the other main EU economies, and compare favourably to other major global economies.
CORPORATE TAX RATES, OCTOBER 2006
| Country | Rate |
| Japan | 40.7% |
| Germany | 38.34% |
| India | 33.66% |
| USA | 40% |
| Canada | 36.1% |
| Spain | 35% |
| Belgium | 33.99% |
| France | 33.33% |
| Italy | 37.25% |
| China | 33% |
| Australia | 30% |
| UK | 30% |
| Luxembourg | 29.63% |
| Netherlands | 29.6% |
| Sweden | 28% |
| Austria | 25% |
| Ireland | 12.5%* |
| Denmark | 28% |
[Source: KPMG Corporate Tax Rate Survey, 2006]
Salary Rates
Salary rates in Manchester City Region and wider Northwest are extremely competitive when compared to London and the South East. At the same time the lower cost of living offers the opportunity for individuals to enjoy the city region’s enhanced quality of life. The following table shows the average Gross Annual Earnings for different regions of the UK.
GROSS ANNUAL EARNINGS BY UK REGION
| Region/Area | GAE |
| All UK | £19,943 |
| North East | £17,594 |
| North West | £19,236 |
| Manchester city region | £18,728 |
| Yorkshire & Humber | £18,614 |
| East Midlands | £18,321 |
| West Midlands | £18,801 |
| South West | £18,629 |
| East Anglia | £19,469 |
| London | £27,868 |
| South East | £21,109 |
| Wales | £17,651 |
| Scotland | £19,282 |
[Source: Nomis Official Labour Market Statistics 2007]
GVA (Gross Value Added)
GVA is a measure of an industry or geographical area’s contribution to the UK economy. Recent economic trends indicate that GVA growth is set to continue for Manchester City Region at a rate of between 2.5% and 3% per annum.
UK REGIONAL GVA (Gross Value Added), 2007
| UK Region | GVA (£ Billion) |
| All UK | 1,128.8 |
| London | 196.8 |
| South East | 177.2 |
| North West | 111.3 |
| Manchester city region | 54.3 |
| East of England | £18,614 |
| East Midlands | 109.9 |
| Scotland | 91.0 |
| West Midlands | 89.0 |
| South West | 89.5 |
| Yorkshire & Humber | 82.1 |
| East Midlands | 74.1 |
| Wales | 42.7 |
| North East | 38.8 |
| Northern Ireland | 26.4 |
[Source: National Statistics Online, January 2007 & Greater Manchester Forecasting Model, 2007]
If you require any further information on Manchester City Region economy, please don’t hesitate to contact us.