New trade and investment minister Sir Digby Jones has called for a more competitive corporation tax rate.

Just a few days into his new role within the government, Sir Digby called for a more competitive tax rate for business to stimulate the economy, encourage more R&D investment and to help small businesses, reported the Daily Telegraph .

'In Germany the rates may well be higher, but what if after reliefs and allowances the cheque companies pay is less than here, and the company pays less per pound earned in Germany?,' he told the newspaper.

Sir Digby also called for a clampdown on regulation, and would investigate regional development agencies to ensure they did not offer 'tax bungs' to foreign companies.

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