Tories pledge to cut corporation tax

Conservative shadow chancellor
George Osborne has thrown the
pressure onto Gordon Brown by promising to cut corporation tax from 30% to 27%
after commissioning a report by

In an interview with the
Osborne said the cost of the measure, around £4.5bn, would
be paid for by phasing out various capital reliefs that are currently available.

‘We’re confident that we can achieve this as part of a major reform of
corporation tax. This is an entirely self-contained, and self-financing
simplification of the business tax system,’ Osborne said.

It has been suggested that the Tories have publicised this policy before the
Budget because the fear that Brown will introduce a similar change to
corporation tax, and want to take the plaudits for the bold shift in business

Further reading:

Tories call in PwC to advise on tax

Cameron signals corporation tax cuts

UK tax competitiveness reaches tipping point

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