Will Britain have the lowest tax rate for companies?

George Osborne has floated the possibility of slashing corporation tax to less than 15pc. This move has been billed as a stimulus for businesses that will encourage them to invest and expand. Will it work?

It is a tactic that the Chancellor has employed sseveral times before. In March, he boasted that the UK had the lowest rate in the G20 club of rich nations.

When Osborne started in Government in 2010, the headline rate was 28pc of corporate profits. Now, the rate is 20pc and he promised in March to keep cutting down to 17pc by 2020.