George Osborne promises to cut Corporation Tax to below 15%
Chancellor has said he wants "Britain to get on with it and prove to investors that the country is still open for business"
Chancellor George Osborne has pledged to cut UK Corporation Tax to less than 15%, a 5% drop on the current rate, in a bid to encourage investors to remain positive post-Brexit.
The new tax rate, part of Osborne’s five point economic plan, was revealed in an interview with The Financial Times in which Osborne said he wanted to set the lowest Corporation Tax of any major economy to prove to investors that the country was still “open for business”.
See also: Corporation Tax explained
The pledge comes just four months after the 2016 budget where Osborne announced that corporation tax would fall to 17% by April 2020.
The 15% rate will likely be good news to businesses, not only for the cost-savings associated to the lower rate, but also in attracting more inward investment.
The chancellor also said that he was determined to build a “super competitive economy” and, on the back of the Brexit result, “we must […] make the most of the hand we’ve been dealt.”
Other strategies in his five point plan included ensuring support for bank lending, a push for investment from China, maximising efforts to invest in the Northern Powerhouse, and maintaining the UK’s fiscal credibility.