Osborne pledges to cut corporation tax
By politics.co.uk staff
George Osborne has made several key concessions to the private sector in his first major speech since becoming chancellor.
Speaking at the Confederation of British Industry (CBI) dinner last night, Mr Osborne pledged to cut corporation tax and suggested a five-year plan would be mapped out during the emergency Budget next month.
“I can confirm that the final coalition agreement that we will publish tomorrow will commit us to lower and simpler corporate tax rates,” he said.
“Let me give you advance notice of what it will say: ‘We will reform the corporate tax system by simplifying reliefs and allowances, and tackling avoidance, in order to reduce headline rates’.”
There was some uncertainty as to whether the Tories commitment to cutting corporation tax from 28% to 25% would survive negotiations with the Lib Dems, but last night’s speech gave a clear indication that the Conservatives intend to use the private sector to drive economic growth.
