Prime Minister puts corporation tax cuts on hold to help fund NHS

18 November 2019, 11:07

Boris Johnson has announced his government will not cut corporation tax
Boris Johnson has announced his government will not cut corporation tax. Picture: PA
EJ Ward

By EJ Ward

April's planned cuts to corporation tax will be put on hold with the money going towards the NHS and public services instead.

Speaking to the CBI the Prime Minister laid out his plans to woo business leaders and the General Election campaign sets its focus on the economy.

Mr Johnson said: "We have to get Brexit done because it is the best thing for our national mood, and the best thing to take our country forward.

"And by the way, it's the best thing for the economy because the worst thing now is the continuing economic uncertainty: people waiting to take on new staff, or invest in property, or just to invest in this country."

Mr Johnson told business leaders the country needs a Government that "believes in business."

The PM reiterated his Brexit deal has the "explicit support of every one of the 635 Conservative candidates at this election", adding: "I hope the implications of that are clear to you for what I hope will happen in Parliament in just a few weeks.

"So all we need is nine more seats and we can deliver Brexit in January, if we can get a working majority we can get Parliament working for you and we could then unleash the potential of the whole country and get on with our one nation Conservative agenda."

Mr Johnson criticised Jeremy Corbyn's Brexit position and claimed: "One thing is clear - the Sturgeon-Corbyn alliance would consign this country to months if not years of dither, delay, discord and division."

Boris Johnson was speaking to business leaders
Boris Johnson was speaking to business leaders. Picture: PA

Quoting Napoleon he said the French military leader was right, the UK is a nation of shopkeepers and more businesses have been created in the UK than in France.

He said: "There have been more businesses created in this country since 2010 than by France and Germany combined and that is the balance and symmetry at the heart of what the Conservatives are proposing with "one nation conservatism between fantastic public services and a strong market economy."

On crime, the PM said the best way to stop children getting caught up in crime is to give every child in this country an "excellent education" with Mr Johnson vowing to boost per-pupil funding so that each pupil gets a minimum of £4000 in primary and £5000 in secondary schools.

Mr Johnson revealed his plans to postpone further cuts in corporation tax which he said was the "fiscally responsible thing to do," the move will save £6bn that can be "put into the priorities of the British people including the NHS."

Mr Johnson said business rates is a top priority for a Conservative majority Government, promising to launch a "fundamental review" at the first budget.

Mr Johnson will also vow to increase the employment allowance from £3,000 to £4,000, providing a tax cut of up to £1,000 for more than half a million businesses.

He also said a majority Tory Government will increase the R&D tax credit rate will from 12% to 13%, with the Conservatives saying they will boost manufacturing and the professional, scientific and technical services sectors in particular.

They have also promised to increase the structures and buildings allowance (SBA) from 2% to 3% to increase the tax relief on the purchase, building or leasing of a structure.