Corporation tax rate cut

Britain’s chancellor of the exchequer George Osborne is to cut the rate of corporation tax to encourage businesses to locate in Britain and spur growth.

From April, the rate will fall to 24% from 26%, double the cut previously planned. Reductions in each of the next two years will bring it to 22% in 2014 instead of 23%, Mr Osborne said in his budget statement to parliament in London yesterday.

Banks will see the levy charged on their balance sheets rise to 0.105% from 0.088% to offset the benefit.