The tax rate on small companies is to be raised from 20p this year to 22p in 2009, Chancellor Gordon Brown has announced.
In what many believe will be his final Budget speech this afternoon, Brown says the rate would be raised in three stages.
He also says mainstream corporation tax will be cut from 30p to 28p from April next year, pushing the rate lower than that in Germany, France, Japan and the US.
“It will be the lowest of all the major economies,” he told a packed House of Commons.
The Chancellor also announces in the last year investment has grown by 6%, business investment by 7%, and inward investment by 10%
He adds business investment is forecast to rise again by more than 7% this year.
Investment in schools, hospitals, security and defence and infrastructure will rise from £43bn this year to £60bn by 2012.
Investment in the NHS in England will rise by £8bn this year.
Public investment in science will rise from £5bn this year to £6.3bn by 2010-11.
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