George Osborne urges US not to give up on Britain after Brexit

'Britain is open for business,' Osborne declared in an article in the Wall Street Journal

George Osborne has redoubled his efforts to build closer economic ties with the US after the UK (REUTERS)

George Osborne has redoubled his efforts to build closer economic ties with the US after the UK voted to leave the EU in the referendum on June 23.

"Britain is open for business," Osborne declared in an article in the Wall Street Journal ahead of a visit to New York on Monday.

The Chancellor is seeking to dispell doubts that Britain still has "the appetite to play a leading role on the world stage" and stop US companies from taking investment out of the country.

Osborne has been accused of trying to turn the UK into a tax haven after he announced that he would cut corporation tax from 20 per cent to 15 per cent, taking it to the lowest of any major economy in a bid to attract foreing business.

The cut takes the UK rate close to the Irish rate of 12.5 per cent as Osborne tries to boost the competitiveness of the UK as a business environment despite its uncertain immediate future and eventual departure from the EU.

"We intend to offer even more competitive taxes, and to become a home to more, not less, international business. To signal our intent, we will cut our corporate tax rate still further," Osborne said, indicating that interest rates could fall below 15 per cent in the future.

The policy was slammed as the wrong way to psychologically prepare for negotiations over tax and trade with the EU by Pascal Lemy, the former director general of the WTO.

"I'm quite convinced that at the end of the day, if you want a proper balanced win-win relationship in the future, starting with tax competition is not the right way psychologically to prepare this negotiation,” Lemy said.

Attractive private investment and jobs to regions beyond major cities is cited by Osborne as the right way to combat inequality in the UK.

"We must redouble our efforts to connect up the north and midlands—regions that largely voted to leave the EU—by building a Northern Powerhouse based on local decision-making, world-class research and infrastructure," he said.

The article pitched the UK as a party of a global economy outside of the boundaries of the EU, by acting as the voice of Europe in the rest of the world and forging closer economic ties outside of Europe.

"For first time in 40 years, the UK will be setting its own trade terms. So we should begin the conversation now with the U.S., and with the members of the North American Free Trade Agreement, about how we can deliver even closer economic ties," he wrote.