UK Will not Cut Corporate Tax Rate to 15 Percent

During the Conservative Party conference in Birmingham held on October 3, the new Chancellor Philip Hammond said the government will follow its plans to lower Britain's corporation tax rate to 17 percent by 2020, instead of 15 percent as suggested by his predecessor George Osborne.  

Background: Rate of 15 percent

Earlier in July, George Osborne suggested to cut the corporate tax rate to 15 percent in order to boost the economy after the Brexit and to give a signal to the global companies that the UK is still “open for business.”

Tax Rate of 17 percent by 2020

During his speech, Mr. Hammond made no reference to 15 percent tax, saying that “at 20 percent, we have a highly competitive Corporation Tax rate, and as it falls to 17 percent over the next three years, it will be more attractive still.”

Post-Brexit Economy

Mr. Hammond warned that the decision to leave the EU had introduced "new fiscal uncertainty" saying that business confidence would go on “a bit of a rollercoaster.” He stressed that he is determined to help the economy.

"We are ready to take whatever steps are necessary to protect this economy from turbulence and when the process is over we are ready to provide support for British businesses as they adjust to life outside the EU," he said.

Mr. Hammond also announced £220m of new funding for the tech sector to support efforts to transform biomedical and computer innovations into marketable products.

Sources: Reuters, Independent, ITV


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