Theresa May will put forward her aim to match Donald Trump’s cuts to corporation tax in her first speech to the Confederation of British Industry (CBI) annual conference.
The Prime Minister aims to cut corporation tax from 20 percent down to 17 percent by 2020, in an attempt to attract large businesses from other parts of the European Union to the UK. This is similar to Trump’s pledge, who plans to cut business tax from 35 percent to 15 percent.
““In the Autumn Statement on Wednesday, we will commit to substantial real terms increases in Government investment in R&D (research and development) – investing an extra £2 billion a year by the end of this Parliament to help put post-Brexit Britain at the cutting edge of science and tech.
“And we will also review the support we give innovative firms through the tax system … because my aim is not simply for the UK to have the lowest corporate tax rate in the G20, but also one that is profoundly pro-innovation.”
May’s speech comes two days before the Conservative government delivers its first post-EU referendum budget.
The Prime Minister will say:
“We believe in free markets. They are the means by which we spread opportunity and lift people out of poverty. We believe in capitalism – the means by which we drive economic growth, putting people into work to provide for their families. And we believe in business – the entrepreneurs and the innovators who employ millions of people up and down this country – the basis for our prosperity.
“The Conservative Party – and the Government I lead – will always believe in these things. But I am here today not just to reaffirm these core beliefs, but to say that – if this is what we value – we need to be prepared to adapt and change. For if we support free markets, value capitalism and back business – and we do – we must do everything we can to keep faith with them.”