Corporation tax hike on big business profits cancelled, says Kwarteng

Levy was due to rise from 19 to 25 per cent next April – after Rishi Sunak accepted low rate had failed to boost investment

The planned increase in corporation tax on big business profits will be axed, the chancellor Kwasi Kwarteng has announced, claiming the move can help boost wages and jobs.

The levy was due to rise from 19 per cent to 25 per cent next April – after Rishi Sunak accepted the low rate had failed to boost investment – but will now stay at the lowest rate in the G20, at a cost of £19bn.

Earlier this week, an analysis by the IPPR think tank found that – even with the 19p rate, by far the lowest of leading economies – the UK has fallen behind its rivals in the investment race.