UK's Johnson drops corporate tax cut plan in bid to woo voters
British Prime Minister Boris Johnson said he was putting on hold further cuts in corporation tax and told voters he would use the money for spending on health and other priorities.
London: British Prime Minister Boris Johnson said on Monday he was putting on hold further cuts in corporation tax and told voters he would use the money for spending on health and other priorities.
His comments addressed a central issue in a Dec. 12 election as Johnson has been under pressure to show how he would pay for a plan to reverse cuts to many public services over the past decade and boost infrastructure investment.
“We are postponing further cuts in corporation tax,” Johnson told business leaders at a conference organized by the Confederation of British Industry, an employers’ group.
“This saves 6 billion pounds ($7.8 billion) that we can put into the priorities of the British people, including the NHS (National Health Service).”
Britain’s main corporation tax is among the lowest among the world’s industrialized economies but the government had been due to cut it to 17% next year from 19% now.
In September, finance minister Sajid Javid announced Britain’s biggest increase in day-to-day spending in 15 years in what was widely seen as an attempt to counter the spending promises of the left-wing opposition Labour Party.
Johnson, who called the election to try to secure a majority in parliament that would back his plan for Britain’s departure from the European Union, said on Monday he would keep Javid as his finance minister if their Conservatives win the election. British media have reported tensions between the teams of the two most powerful men in the government.(Reuters)