This morning’s Financial Times leads on a Tory proposal to reduce corporation tax from 30% to 27%. The cut would be paid for by ending many of the reliefs that currently exist within the corporation tax system.
“This is an entirely self-contained, and self-financing, simplification of the business tax system,” George Osborne told the newspaper.
Mr Osborne’s intervention will be seen as a preemptive strike before Wednesday’s Budget – Mr Brown’s last. The FT:
"Treasury officials have repeatedly indicated that Wednesday’s Budget will be substantial in scope. There were indications on Sunday that Mr Brown could be planning sweeping changes in business taxation, personal tax and welfare reform."
According to The Sun, Mr Brown is planning a swoop on larger cars:
"Gas-guzzling 4x4s face a massive hike in road tax bills, Gordon Brown will announce in Wednesday’s Budget. The cost will double to more than £400 by 2010, say industry sources. The Chancellor wants to single out off-roaders like Range Rovers and BMW X5s that spew out huge amounts of carbon dioxide. In last year’s Budget Mr Brown included them in his new Band G of road tax that pays £210 a year. Eco-friendly cars with rock bottom emissions in Band A will pay NO tax at all."