Conservatives propose 25p business taxation

Date: 6th March 2009

The Conservatives have proposed cutting the rate of business taxation to 25p in a bid to increase competition and cut debt.

Speaking in Birmingham, Shadow Chancellor George Osborne stated that business would get a smaller rate of taxation relief on borrowing and instead be urged to raise capital by issuing shares, according to the Evening Standard.

Mr Osborne asserted that the taxation break would be funded by cutting "complex reliefs and allowances", which could create new jobs and encourage investment.

As reported by the paper, he said: "By reducing the tax breaks for debt we could potentially fund a significant reduction in the headline rate of corporation tax - a key determinant of our international competitiveness.

"Economy built on debt has to give way to one built on greater ownership."

Earlier in March, representatives from the British Chambers of Commerce demanded that the government reduce corporate taxation and reinstate empty commercial property rate relief at the upcoming budget report.