UK’s Osborne to slash corporation tax to cushion Brexit blow

London (Reuters): British finance minister George Osborne is planning to cut corporation tax to less than 15% in an attempt to offset the shock to investors of the country’s decision to leave the European Union, the Financial Times reported on Sunday.

Osborne was also quoted saying he would put more effort into Britain’s relationship with China and lead another trade visit later this year, after the shock referendum decision.

He told the newspaper he wanted to build a “super competitive economy” with low business taxes and a global focus. Osborne did not specify a date for cutting corporation tax to below 15%. In his most recent budget statement, announced in March, Osborne announced a cut in the corporation tax to 17% by 2020, down from 20% now.

That compares with an average of about 25% among other countries in the Organisation for Economic Co-operation and Development and a further cut may anger some EU countries which have expressed concerns about competitive tax policies.

Earlier on Sunday, Reuters reported that the OECD, in an internal email, said it believed a further cut in corporation tax by Britain was unlikely but if it happened it would “really turn the UK into a tax haven type of economy.”

Other elements of Osborne’s plan to steer the economy through the upheaval caused by the Brexit vote included ensuring support for bank lending, intensifying efforts to direct investment to northern England and maintaining Britain’s fiscal credibility, the FT quoted him as saying.