Spring Budget 2023: Chancellor of the Exchequer Jeremy Hunt has announced in his address to the House of Commons today (15 March 2023), that government will raise corporation tax for business from 19% to 25%.
Organisations which make a profit of more than £250,000 will pay 25% tax on their profits from April, though Hunt said only 10% of business would be likely to pay the full rate.
Hunt said this move comes under the enterprise element of the Prime Minister's approach to levelling up Britain's economy.
He added that the UK has lower levels of business taxation than France, Germany, Italy and Japan, and that the government was looking to create a pro-business, pro-enterprise tax regime.
Hunt said: "We won't rest until we are Europe's most dynamic enterprise economy...Since 2010 we have one million more businesses in the UK, a bigger increase than Germany, France and Italy, but I want another million, and another million after that, so today I bring forward enterprise measures in these three areas: to lower business taxes, reduce energy costs, and support our growth industries."
He added: "Even after the corporation tax rise this April, we will have the lowest headline rate in the G7."
