In the Confederation of British Industry (CBI) conference last week, Prime Minister Boris Johnson stated that next April’s planned cut in corporation tax is to be put on hold.
The rate paid by firms on their profits was due to fall from 19% to 17%. However, the Prime Minister said the estimate £6 billion would instead be spent on the NHS and public services.
The Prime Minister said that the UK already had the lowest rate of corporation tax of ‘any major economy’ and further cuts would be ‘postponed’.
In response to this, CBI Director Carolyn Fairbairn claimed the move ‘could work for the country if it is backed by further efforts to cut the costs of doing business and promote growth’.
Quote from Nigel Holland:
“With the UK’s corporation tax rates already being lower than many other economies, further cuts are unnecessary. Instead of cutting business rates further, we should make sure this money goes to good use e.g. into the NHS.”
