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Prime Minister of Britain Boris Johnson bared on Monday he was putting on hold corporate tax cuts and told voters he would spend for health plans.
This move is in light of the Dec. 12 election to woo voters by saying that he would reverse cuts to many public services in the last ten years and beef up infrastructure projects.
“We are postponing further cuts in corporation tax,” Johnson said. “This saves 6 billion pounds (7.8 billion) that we can put into the priorities of the British people, including the NHS (National Health Service).”
The corporation tax in the U.K. is one of the lowest among the world’s industrialized economies. However, the government is slated to trim 17% next year from the current 19%.
CBI’s director-general took the deferred corporation tax as a welcome development.
“Postponing further cuts to corporation tax to invest in public services could work for the country if it is backed by further efforts to the costs of doing business and promote growth,” said Carolyn Fairbairn.
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