Responding to the news of the change in Chancellor and the reversal of the decision to reduce the rate of corporation tax, BAB CEO, Duncan Edwards, commented: 

“Just three weeks ago, BritishAmerican Business published a statement supporting the decision not to increase the rate of corporation tax and praised the pro-business, pro-growth initiatives in the ‘mini-budget’.  Raising taxes on businesses and employment will reduce Britain’s ranking in the global competition for investment. 

“It is therefore disappointing to see today that there has now been a second reversal and that corporation tax will indeed rise to 25% in April next year. 

“We do recognise the need for the government to act in the face of economic instability, but in the recent conservative leadership campaign both the Prime Minister and the new Chancellor, Jeremy Hunt, made clear and strong commitments to lower corporation tax and to encourage a pro-business environment, and we hope they will find a way to fulfill this commitment.”