Chancellor reiterates commitment to corporation tax cut

The Chancellor, George Osborne has marked out the decision to make large cuts to corporation tax as a defining characteristic of the Government.

Making a speech to the annual conference of the Institute of Directors (IoD), Mr Osborne said that the move to reduce the main rate of corporation tax from 28 per cent to 24 per cent over the coming years was “something that I am proud of and, I think, will be a signature of the Government”.

The Chancellor also took the opportunity afforded by the speech to insist that the 50 per cent rate of income tax is only a temporary measure.

However, he added that a review would not take place before January 2012, a date that coincides with the initial batch of tax returns at the top rate.