Jeremy Hunt confirms corporation tax rise to 25% from April
He told the Commons it would lead to a 3% increase in business investment a year and without it, the UK would have "fallen down international league tables on tax competitiveness and damaged growth".
At its peak, the scheme could see business investment up by about 3%, the OBR report said. However it also pointed out that this was lower than the 5% rise under the super-deduction scheme which this policy replaces. The rise was justified as a means to claw back some of the billions of pounds worth of public money that had been used to prop up businesses during the Covid-19 pandemic.
On 23 September, then-chancellor Kwasi Kwarteng confirmed the move in the Commons, telling the country it would boost growth - but his Budget quickly unravelled.
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