The Taxpayers' Alliance campaign group has demanded a raft of reductions in rates, just days after George Osborne revealed a reduction in corporation taxes

Mark Sands
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Campaign group Taxpayers Alliance says corporation tax should drop to just 10 per cent (Source: Getty)

Campaign group Taxpayers' Alliance has called on chancellor George Osborne to follow up on his corporation tax cut with a raft of new measures to shore up confidence in the economy.

Osborne announced on Sunday that corporation tax would drop to 15 per cent in a bid to encourage businesses to Britain in the aftermath of last week's Brexit vote.

However, Taxpayers' Alliance has now called on the chancellor to go further, slashing income tax and VAT, as well as continuing to drop business taxes.

Calling the cuts “a positive vision for taxpayers” the campaign group has demanded a temporary reduction in VAT to 17.5 per cent, with a review scheduled for one year later.

In addition, the 45p rate of income tax should be scrapped altogether, while corporation tax should plummet to just 10 per cent.

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Taxpayers' Alliance chairman Andrew Allum said: "The UK has an exciting opportunity to become a more liberal, competitive economy. It's crucial that our politicians are positive and show that Britain is an attractive place to do business, with competitive conditions to match our talented workforce.

"We need a positive vision for British taxpayers outside the EU, and meaningful tax cuts and strategic reforms to boost growth and prosperity are excellent first steps."

In addition, the group have lent their support to immediate expansion of both Heathrow and Gatwick airport, as well as the relaxation of planning law to allow for housebuilding.

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