Britain plans to cut corporation tax to hold onto business

Desperate times call for desperate measures.

However, former World Trade Organisation chief Pascal Lamy told BBC that Osborne’ s plans on corporation tax should take into account the EU’s position on the issue, since it could be seen as the start of Brexit negotiations.

EU Commissioner of Financial Stability, Financial Services and Capital Markets Union Jonathan Hill (C) talks with EU Commissioner of Economic and Financial Affairs, Taxation and Customs Pierre Moscovici (R) during a Commissioners college meeting at the EU headquarters in Brussels.

Even before “Brexit”, economists had expressed doubt over achieving a budget surplus by 2020, a goal set by Osborne in the budget in July past year.

‘How we respond will determine the impact on jobs and growth.

British finance minister George Osborne warned Friday that the government would likely scrap its promise to achieve a budget surplus by 2020 owing to fallout from Brexit.

Deputy Doherty said: “The news that George Osborne plans to slash Corporation Tax in Britain shows how volatile a tax policy built on corporation tax receipts is”.

However, Moscovici also said there was no reason to be “excessively worried”, suggesting that Osborne may not be around to implement his tax cut plan.

Illustrating the concerns, and effects of the Brexit, a new survey shows Britain’s construction industry suffered its worst contraction in seven years in June in the run-up to the referendum vote.

Companies are cutting forecasts. Real estate investments are being held back. We need to slash capital gains tax, cut the marginal [income] tax rate to attract mobile talent, and bring the tax treatment of share options into line with the United Kingdom and other competitor economies. The move could also alienate voters, given recent controversies over tax deals with multinationals such as Google.

When Osborne announced a new fiscal plan previous year, including the 2020 surplus target, he included a clause relieving the government of the requirement to put the public finances in the black in the event of a hit to the economy.

“The Autumn Statement 2016 will now become more important for the country as potentially new chancellor steps forward”, the accountancy firm said. He told the Financial Times that he wants to play a leading role in shaping the country’s economic future.