The UK’s new Chancellor, Philip Hammond, has hinted that he will abandon his predecessor George Osborne’s plan to cut corporation tax to below 15 percent.
Shortly after the UK voted to leave the European Union, Osborne said that he was looking at options for reducing the UK-wide corporate tax rate to below 15 percent, in an effort to build a “super competitive economy.” Osborne lost his job when the new Prime Minister, Theresa May, reshuffled the Cabinet.
His replacement, Hammond, had previously refused to be drawn on the issue. Hammond had told parliament that “when we look at the corporate tax environment, we will not just be looking at headline rates.”
However, according to comments first reported by Bloomberg, Hammond informed a September 10 meeting of European Union finance ministers that Osborne’s comments should not be taken as government policy. “Suggestions made in the last days of office are just suggestions,” he reportedly said.
The rate is currently 20 percent and is scheduled to fall to 17 percent by 2020.
Hammond will deliver his first Autumn Statement as Chancellor on November 23. He has said that he will use the mini Budget to “reset fiscal policy” if it proves necessary to do so in the wake of the Brexit vote.
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