In the Budget and Spending Review, the Chancellor announced changes to the UK's Tonnage Tax regime.

The Budget announces that: “the government will make substantive reforms to the UK’s Tonnage Tax regime for the first time since it was introduced in 2000. These reforms aim to increase the number of firms basing their headquarters in the UK, boosting the UK’s world-leading maritime services industry.”

The UK Chamber has led on work with the Treasury in recent years and reacting to the news, Gavin Simmonds, Policy Director at the Chamber said:

“The package of measures announced by the Chancellor today will help UK Shipping and be welcomed by the shipping industry. Tonnage Tax has caused a renaissance in shipping since its introduction in 2000. It was in urgent need of updating to respond to changing trends in shipping and to better protect and promote maritime UK and global Britain. We look forward to working with Government to implement these changes which will enhance the attractiveness of UK ships and the UK as a global centre for shipping business.

“We congratulate the Chancellor on responding to the needs of our industry and we welcome this package which will immediately strengthen the UK Flag, encourage innovation in the offshore energy sector and attract international investment. There is more work to be done to promote the employment and training of seafarers, and broadening the regime, and we look forward to working with Government to introduce further improvements in our national tonnage tax regime.

“We have worked with our members, the Department for Transport and lately closely with UK Ship Register. We are delighted the Chancellor has listened to our case and responded with an effective package. This really does begin to put the Great back into British Shipping!”