Labour offers businesses olive branch with low rate of corporation tax

Labour will reverse an impending cut in corporation tax if elected next year, but is committed to maintaining the lowest level of all G7 countries, shadow chancellor Ed Balls is expected to say on Monday.

Balls will say Labour would reverse the coalition's proposed cut in corporation tax from 21% to 20%  - due from April next year - in a speech at the London School of Business. But the party, he will add, is committed to keeping it lower than any other G7 country, according to reports. The next lowest level of corporation tax in the G7 group is Canada, at 26.5%. Labour is also considering a lower rate of capital gains tax for long-term investors, and is "examining the case" for an 'allowance for corporate equity', which would equalise the treatment of debt and equity by giving a sim...