Rachel Reeves – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Rachel Reeves on 2016-07-06.

To ask Mr Chancellor of the Exchequer, what assessment he has made of the potential annual cost to the Exchequer of a reduction in corporation tax to (a) 15 (b) 14 and (c) 10 per cent.

Mr David Gauke

The corporation tax reductions since 2010 have been designed to increase the competitiveness of the UK business tax system and to support investment and jobs in the UK. Their positive effect has been evidenced by strong growth in GDP, employment, and business investment since 2010.

The Chancellor has now set out his ambition to reduce the corporation tax rate further, to 15% or below, to reinforce this strategy and send a clear message that the UK is open for business.

However, since 2010-11, onshore corporation tax receipts have increased almost 20%, despite lowering the rate from 28% to 20%.