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| Brexit: Osborne pledges to cut corporation tax | Brexit: Osborne pledges to cut corporation tax |
| (35 minutes later) | |
| George Osborne has pledged to slash corporation tax to encourage businesses to still invest in the UK following the EU referendum vote. | George Osborne has pledged to slash corporation tax to encourage businesses to still invest in the UK following the EU referendum vote. |
| In an interview with the Financial Times, the chancellor said he would cut the rate to below 15% - some 5% lower than its current 20% rate. | In an interview with the Financial Times, the chancellor said he would cut the rate to below 15% - some 5% lower than its current 20% rate. |
| That would give the UK the lowest corporation tax of any major economy. | That would give the UK the lowest corporation tax of any major economy. |
| Mr Osborne said the cut was part of his plans to build a "super-competitive economy" with low tax rates. | |
| A Treasury spokesperson confirmed the Financial Times's story was correct but said they did not know when the cut would happen. | |
| In March, the chancellor said corporation tax would fall to 17% by 2020. | In March, the chancellor said corporation tax would fall to 17% by 2020. |
| Mr Osborne told the FT it was important for "Britain to "get on with it" to prove to investors that the country was still "open for business". | |
| His announcement comes amid reports that the Bank of England could this week lower the amount of capital banks have to keep aside as a safety net in case of unexpected risks. | |
| On Tuesday, the Bank publishes the outcome of its bi-annual Financial Policy Committee meeting which looks at risks to the UK's financial stability. | |
| Mr Carney said last week that the Bank would take "any further actions it deems appropriate to support financial stability". | |
| One option could be to reduce the amount of capital banks are required to hold to help stimulate the economy. | |
| 'Signs of shock' | |
| Mr Osborne has already abandoned his long-held target to restore government finances to a surplus by 2020 amid fears the uncertainty caused by the Leave vote could hold back the economy. | |
| The chancellor said the economy was showing "clear signs" of shock following the vote to leave the European Union. | |
| "How we respond will determine the impact on jobs and growth," he said at the time. | |
| Economists have also warned about the impact of the Leave vote. | |
| "Having voted for Brexit last week, the economy is clearly going to go into a down swing, that might be a full-blown recession, that might just be very very low growth," Paul Johnson, the director of the Institute for Fiscal Studies, said last week. |