Theresa May will cut corporation tax to the lowest of world’s top 20 economies as she offers new deal for businesses – but only if they ‘do more’ for society

THERESA May will cut Britain's corporation tax to make it the lowest rate of the world's top 20 economies as she makes businesses a carrot-and-stick new offer – but only if they “do more” for society.

In an olive branch move, the PM will pledge an extra £2billion to fund cutting edge research and development in science, technology and robotics as she aims to make the UK the world’s high tech leader.

She will also pledge a new “active role” for government to solve companies’ problems and turn them into major successes.

But in return, the PM will insist firms must “do even more” for the country – including paying their full taxes, helping young people and giving more back to local communities.

Mrs May’s new deal comes as she lays out her flagship Industrial Strategy for the first time at the CBI’s Annual Conference today.

Her blueprint – which she dubs “stepping up, not stepping back” - marks a major break from predecessor David Cameron’s hands-off approach to business.

She will also use the speech today to heal wounds with bosses after unleashing a barrage of attacks on them since entering Number 10 that left many spooked.

In her speech to captains of industry, Mrs May will insist: “We believe in free markets, we believe in capitalism, and we believe in business.

“The Conservative Party – and the Government I lead – will always believe in these things.

“But if this is what we value, we need to be prepared to adapt and change.”