No hike to be sought in corporation tax

THE Government will not be forced to increase the corporation tax rate as part of the deal for funds to bailout the banks, German and EU sources have confirmed.

However, other changes to the tax system for companies will have to be made, but probably not immediately.

The decision comes as a public debate is opening up on why big business should not help foot the bill for the banks’ bad loans and the state’s overspending.