Prime Minister Theresa May will today commit her government to charging the lowest rate of corporation tax in any of the world's 20 largest economies.
The government has already promised to commit the charge from 20 per cent to 17 per cent by 2020, but will go further in her speech at the CBI later this morning.
It will come alongside her pledge to spend billions on support for Britain's high-tech industries.
The Prime Minister's words on corporation tax are particularly interesting because of the recent election of Donald Trump in the US.
Trump campaigned on a vow to cut businesses' tax bills from 35 per cent to just 15 per cent, meaning that to keep her promise, May will need to introduce a fresh tax giveaway for corporations.
It comes as Downing Street continues to rebuild ties with business after May delivered a divisive speech at the Conservative Party conference in October.
The Prime Minister pledged action against “dysfunctional” markets, delivered a populist broadside against bad bosses who allow pension funds to go bust or fail to look after their staff, and launched a scathing attack on multinationals that 'dodge' tax.