UK to slash corporate taxes

Britain's Finance Minister George Osborne arrives in Downing Street in central London on June 28, 2016.
Britain's Finance Minister George Osborne arrives in Downing Street in central London on June 28, 2016.PHOTO: AFP

Britain's Finance Minister George Osborne plans to seek sizeable cuts to corporate taxes, as the nation faces heightened prospects of a business exodus after its shock decision to leave the European Union.

Britain has a 20 per cent tax rate for businesses that is set to fall to 17 per cent in 2020. The proposed new 15 per cent tax has no timetable and will be among the lowest for any major economy.

Opposition leaders scoffed at the plan, calling it an attempt to turn the country into a giant tax haven. However, Mr Osborne told the Financial Times that a national effort was necessary to make Brexit work, as Britain faces possible financial risks including a recession.

Brexit has rocked the country's political order, with Prime Minister David Cameron saying he will step down by October and Labour leader Jeremy Corbyn facing an internal coup.

Yesterday, lead Brexit campaigner Nigel Farage also stepped down as head of the UK Independence Party, claiming to have achieved his career goal and offering his political services to "other independence movements springing up in other parts of the European Union".

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A version of this article appeared in the print edition of The Straits Times on July 05, 2016, with the headline 'UK to slash corporate taxes'. Print Edition | Subscribe