Corporation tax cuts put on hold

20 Nov 2019

Next April's planned cut in corporation tax is to be put on hold, Prime Minister Boris Johnson told the Confederation of British Industry (CBI) conference on 18 November.

The rate paid by firms on their profits was due to fall from 19% to 17% next April. However, the Prime Minister said the estimated £6 billion would instead be spent on the NHS and other public services.

The Prime Minister said the UK already had the lowest rate of corporation tax of 'any major economy' and further cuts would be 'postponed'.

In response, CBI Director Carolyn Fairbairn said the move 'could work for the country if it is backed by further efforts to cut the costs of doing business and promote growth'.

Labour leader Jeremy Corbyn outlined plans to train around 320,000 apprentices in jobs such as construction, manufacturing and design within the renewable energy, transport and forestry sectors.

Meanwhile, Jo Swinson, leader of the Liberal Democrats, told the conference that her party would abolish business rates and replace them with a commercial landowner levy.

Southampton Office

HJS Accountants
Tagus House
9 Ocean Way
Southampton
Hampshire
SO14 3TJ

Tel: 023 8023 4222

Winchester Office

HJS Accountants
6 Charlecote Mews
Staple Gardens
Winchester
SO23 8SR

Tel: 01962 842000

Reading Office

HJS Reading
3 Richfield Place
Richfield Avenue
Reading, Berkshire
RG1 8EQ

Tel: 0118 951 1115