UK tax cut would ‘offset’ Brexit effect

UK Chancellor George Osborne’s plans to slash corporation tax, in the battle for overseas investment, would wipe out the effects of Brexit and boost FDI by more than 10%, a think-tank claims.

The London-based Centre for Economics and Business Research (Cebr) says the UK’s decision to leave the EU will “hit inward investment”, until there is clarity about the country’s position in Europe and measures to counter the effects of Brexit.

Mr Osborne’s reaction to the Brexit fallout was to lower the UK’s corporation tax rate from 20% to 15% to show the British economy is “still open for business”.