Osborne Cuts Company Tax, Targets Sugar as U.K. Growth Slows
- OBR predicts economic growth of 2% in 2016, 2.2% in 2017
- Chancellor announces higher threshold for 40% income tax
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Chancellor of the Exchequer George Osborne announced a further cut in the main rate of company tax and put a levy on sugary drinks as he warned the U.K. economy will grow less quickly in each of the next five years than previously forecast.
In his annual budget speech to the House of Commons, Osborne said corporation tax will be lowered to 17 percent by 2020 from 20 percent now. He also set out higher thresholds for business rates for small companies, seeking to emphasize his Conservative Party’s image as the champion of enterprise, while tightening loopholes that allow corporations operating in many countries to minimize their U.K. tax bills.