Tories abandon tax cut

Boris Johnson has announced he intends to ditch plans to cut cooperation tax if the Conservatives win the election.

The Prime Minister pledged to spend the £6 billion generated by the taxation on the NHS and other public services.

During Johnson’s speech at the Confederation of British Industry’s annual conference he urged business leaders to show understanding despite his failure to deliver on the party’s promise to reduce the tax to 17% by 2020.

The announcement by the Prime Minister has been met with mixed reactions from the business community.

The Director General of the CBI, Carolyn Fairbairn said: “Postponing further cuts to corporation tax to invest in public services could work for the country if it is backed by further efforts to the costs of doing business and promote growth.”

The commitment to further reduce corporation tax was made by former Chancellor of the Exchequer, George Osbourne, during his Budget back in 2016. The rate has fallen from 28% to 19% since 2010 and the next proposed cut would’ve seen it drop to 17%.

Political commentators were quick to point out how other cabinet members were defending the cuts and its benefit to the economy.

Business secretary, Andrea Leadsom, appeared on BBC Radio 4’s Today Programme only hours earlier claiming HMRC’s tax intake had increased to “something like 45 percent” since the reduction began.

Her response was mocked on Twitter. Even by presenter Nick Robinson.

Words: Dan Taylor | Featured Image: Dianna Bonner