Expert says lower corporate tax will bring economic growth

Chancellor George Osborne’s promise to cut corporation tax is a worthwhile move, according to one expert.

Martin Bamford, chartered financial officer for Informed Choice, believes it can lead to economic growth “which will benefit shareholders and taxpayers”.

He believes that placing emphasis on bringing confidence back to the private sector is long overdue and warned against any measures to grow an “already bloated public sector”.

Mr Bamford also hinted that a lowering of the tax burden on businesses may tempt companies back to the UK, rather than them residing in offshore havens.

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He also indicated that large firms are consistently making assessments about where they should operate based on potential tax rates.

Mr Osborne, in a speech at the Confederation of British Industry’s Annual Dinner this week, said the corporate tax would be a government priority and its aim would be to create the most competitive rate among G20 nations.

By Colette Paxton