The tax currently stands 24p in the pound and was already scheduled to drop to 22p in 2014. Yesterday’s announcement means it will instead drop even further on that date, giving Britain the lowest business tax rate in the G7.
George Osborne has already cut the rate from 28p in the pound since taking office and yesterday said he wants the UK “to have the most competitive business tax regime of any major economy in the world”.
He added that previous cuts to have “helped British companies and frankly left other countries scrambling to keep up”.
Mark Boleat of the City of London Corporation said the decision was “welcome” and “sends a clear message that the UK is open for business”. “This will help to deliver jobs and growth needed across the country,” he added.