UK's Labour makes election pledge to cap corporation tax at 25%

Seeking to offer stability to businesses, party says it will cap corporation tax for up to five years if it wins an election expected later this year

Rachel Reeves said Labour will cap UK corporation tax for up to five years if elected. Picture: PA

Britain's opposition Labour Party will cap corporation tax at 25% if it wins the next election and will look to cut that rate if needed, the party's finance policy chief Rachel Reeves told business leaders.

Businesses have long complained about a lack of visibility on everything from tax levels to incentive schemes in Britain, which they say hinders their ability to invest and improve productivity.