Brexit Secretary Dominic Raab says Britain could slash business tax to 10% after a No Deal Brexit
BRITAIN could slash corporation tax to 10 per cent to keep firms in the UK after a No Deal Brexit, Dominic Raab claimed last night.
In the most incendiary warning to the EU yet, the Brexit Secretary said the dramatic tax cut was one part of the Chancellor’s "fiscal capacity” to keep the economy afloat if talks collapse.
Tax on company profits currently stands at 19 per cent, with a pledge to reduce it 17 per cent by 2020.
But Mr Raab the Treasury would use every possible measure to give the UK and edge of the EU if talks collapse without a new trade deal in place.
He warned Brussels that the UK would “pull every lever we've got to see us through what short term buffeting or disruption we have.”
His comments came after Philip Hammond used his address to the Conservative Party conference to declare Britain could weather a No Deal storm.
The Chancellor said “be in no doubt that I will maintain enough fiscal firepower to support our economy if that happens.”
Asked on the fringes of the Birmingham gathering if that meant a dramatic slashing of corporation tax to 10 percent, Mr Raab replied: “The Chancellor has talked about reserving fiscal fire power - what more do you want?”
He told the Institute of Economic Affairs: “Of course he is talking about recognition that in the No Deal scenario we want to pull every lever we have got to see us through the short term buffeting or disruption we have.
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He added: “I think the Chancellor gave a brilliant speech”
Last year Mr Hammond also warned that: “If Britain were to leave the European Union without an agreement on market access, we could be forced to change our economic model... to regain competitiveness.”
But he was slammed by Labour for wanting to turn Britain into an “offshore tax haven.”
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