Updated: 22nd November 2019
The Conservative and Labour parties have outlined their respective intentions for headline rates of corporation tax that would be demanded of companies throughout the country if either were to win the upcoming General Election.
There had been an expectation that the Tory party leader and current prime minister Boris Johnson would drop the rate from 19 per cent to 17 per cent in 2020, if he were to be backed by the country next month.
However, in a speech made to the Confederation of British Industry (CBI) earlier this week, Mr Johnson made clear that corporation tax will instead be maintained at its current levels in the event of a Tory majority.
The prime minister explained that the 19 per cent corporation tax rate needed to be maintained in order to fund some of the pledges he’s making with regard to public spending and particularly the NHS.
Mr Johnson said the tax cut for businesses would need to be shelved for now at least because “the NHS is the nation’s priority”.