Last week, I called on the Treasury to introduce a reduction in Corporation Tax to ensure the UK can capitalise on the opportunities of leaving the European Union and make sure we are an even more attractive country to invest in.
As many of you will know, I welcomed the planned reduction in corporation tax to 17 per cent by 2020 in the Chancellor’s 2016 Budget, however following the welcome EU referendum outcome and the clear vote to leave the European Union, we should look at how we change our business tax regime over that period to attract investment and highlight that Britain is open for business.
For us to capitalise on the opportunities of leaving the European Union, we will have to make our country even more attractive to outside investment to stimulate growth, a key part of which is our corporation tax system. An even lower rate would send out a signal that we are positive about business activity and that we want more investment and will reward it further.
I am therefore pleased that earlier this week, the Chancellor announced that he had taken my suggestion on board and he will reduce rate to below 15% – some 5% lower than its current 20% rate – sending a clear signal that Britain remains open for business, paving the way for the UK to prosper outside the EU.
You can read my suggestion to the Chancellor last week here.