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Osborne pledges simpler biz taxes

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Chancellor of the Exchequer George Osborne told the CBI last night that he wants a simpler corporate tax system and lower rates.

The Conservative manifesto promised to cut corporation tax from 28 pence in the pound to 25 pence in the pound. But that pledge has been replaced with a new joint agreement between the Tories and the LibDems which was sort of published today.

Speaking last night, Osborne offered a sneak preview of that agreement. He said: “We will reform the corporate tax system by simplifying reliefs and allowances, and tackling avoidance, in order to reduce headline rates.

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

The lipless nightstalker said he would lay out a five-year plan for corporation tax when he gives his budget in June.

He said small businesses would benefit from his plan to abolish employers' National Insurance contributions for the first ten members of staff. The full speech is here. ®

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