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Ahead of Alistair Darling's first Budget on Wednesday, the Shadow Chancellor has called for a cut in the main corporation tax rate.
The headline rate is due to be reduced from 30% to 28% from this April, however George Osborne has called for a further cut to 25% to improve the UK's competitive in Europe (we currently have the 4th highest rate in the EU).
The current complex system of expensive reliefs and allowances would be removed to pay for the reduction - as the UK's current budget deficit gives the Chancellor very little room to manoeuvre.
As you would hope, Osborne also called for the Small Companies' Tax Rate to remain at 20%. This rate is due to rise to 21%, then 22% over the next two years - hardly an incentive to "entrepreneurs"!
Try our sister site, Bytestart, for full coverage of Budget 2008.
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