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Saturday 30th of October 2010
May 20, 2010    

New Chancellor speaks at CBI’s annual dinner

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by Kay Murchie

New Chancellor George Osborne gave a speech to business leaders at the Confederation of British Industry’s (CBI) annual dinner last night and has outlined plans to reform corporation tax.

He told business leaders that the new Government is committed to lower and simpler corporate tax rates.

At the emergency Budget, on 22 June, Mr Osborne said he will set out a “5-year road map for a big reform of corporation tax.”

Meanwhile, the new Chancellor believes growth will come from the businesses of Britain and he wants to make ”Britain to be the easiest place in the world to start a business“.

In order to do this, he will scrap employers national insurance contributions on the first ten jobs they create, while increasing the personal income tax allowance.

According to Mr Osborne, the long-term goal is to raise the allowance to £10,000.

Mr Osborne said the “aim is to create the most competitive corporate tax regime in the G20, while protecting manufacturing industries”.

In the meantime, the new coalition Government has already outlined plans to shave £6 billion off public spending this financial year.

Earlier this week, the CBI said that in order to control public finances, a two-year pay freeze should be imposed on most public sector workers’ pay.

Selected public sector pay and recruitment freezes could save £18 billion in the next two years, the business group argued, and it highlighted that pay freezes were the norm in private firms during the recession.

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