U.K. Chancellor George Osborne will cut the corporation tax to 15 percent or lower from 20 percent to revitalize the British economy in the aftermath of the Brexit vote, he told the Financial Times.
The chancellor, who declined to back a candidate for Conservative Party leadership, did not backtrack on his warning that Britain voting Leave in the EU referendum could push it into a recession. Osborne laid out a five-point plan to build a “super competitive economy” to deal with the country’s potential future economic problems.
A key part of that plan is to set one of the lowest corporation tax rates of a major economy, Osborne said, to prove the U.K. is “open for business.”
The chancellor said another part of the plan was to focus on bilateral trade deals and investment, particularly from China, with Osborne adding he would lead an extended visit to China this year.
Other elements in the five-point plan include ensuring support for bank lending, investment in northern England, and maintaining the U.K.’s fiscal credibility, the FT reports.
Prior to the EU referendum vote, Osborne controversially stated a Leave vote would create a £30 billion budget black hole that would need to be filled with tax increases and spending cuts in an emergency budget.
Since the vote, Osborne has said the budget would wait until a replacement for Prime Minister David Cameron is appointed.