Daily Management Review

May promises to cut UK corporate tax by 2020


Britain intends to cut the corporate tax rate down to 17% from the current 21% by 2020. Other estimates are speculative, - stated official representative of the British Prime Minister Theresa May.

Policy Exchange via flickr
Policy Exchange via flickr
Earlier, a number of British media assumed that the corporate tax rate may be reduced to 15% in order to attract investors to the country after leaving the European Union. However, a spokesman for Prime Minister stressed that the government sticks to plans to reduce the corporate tax rate to 17% by 2020. "Other talks about further reducing are speculative," - she added.

Former UK Finance Minister George Osborne was the first to talk about plans to reduce the tax burden on business. He then also announced his intention to make the UK tax one of the lowest in the world. The new British government, appointed after the Brexit referendum, supported his plans. In particular, Theresa May is going to use this proposal when negotiating terms of leaving the union.

A source said many people think that the UK has no ideas that could be used if the talks get difficult. However, the United Kingdom has some trump cards, and the low corporate tax could be one of them. 

British Prime Minister Theresa May says she is going to make every effort to help the country become stronger and richer after Brexit.

"We want to get rid of the bad and bring good by investing in Britain’s future, increasing wealth and expanding opportunities for people in all corners of the country, reforming the system of corporate governance. Let's answer to the demand for change, which the public wants, let's restore their faith and prove that capitalism can provide them with a better future, let us build a strong, fair Britain together", - she said, speaking at a conference of the Confederation of British Industry (CBI), which represents interests of more than 200 thousand enterprises in the country.

Theresa May has promised to annually invest 2 billion pounds in research and development up to 2020. In addition, she announced her intention to make changes in corporate governance by providing companies employees with seats in executive boards. She added, however, that this part of the plan is yet to be developed. Prime Minister noted that "it is necessary to find a model that will work".

source: wsj.com, thesundaytimes.co.uk