10 Mar, 2008
Helen Pow - 10-Mar-2008
Conservative Shadow Chancellor George
Osborne has called on Alistair Darling to cut the main rate of
corporation tax from 28p to 25p.
He has also asked him to abandon the Government's planned increase
in the small companies rate from 20p to 22p.
Osbourne says cutting corporate tax rates, which would be funded by
reductions in capital allowances and scrapping complex reliefs,
would be an important boost to the competitiveness of the British
economy in difficult economic times, and a welcome simplification
of the tax system.
He says: "A decade ago we had the fourth lowest business tax
rate in Europe, today we have the 19th lowest. It is a millstone
round the neck of British firms.
"This will create a much simpler business tax system and a
much lower tax rate. It will send a clear signal that Britain is
open for business and it will be a real shot in the arm for British
companies as they meet the challenge of competing in a global
"We should also stop the damaging 2p rise in the small companies
tax rate that Gordon Brown planned, by scrapping the intrusive new
allowances. Small businesses are the lifeblood of a vibrant economy
and a tax hike now would be a disaster."