George Osborne has given British business a boost by introducing four annual reductions in the rate of corporation tax.
This will eventually take the rate down to 24% from its current figure of 28%, he said.
Osborne said the current rate of 28% is "less and less competitive" and the new rate will mean the UK will have one of the most competitive rates amongst G20 countries and countries in Western Europe.
It will also be the lowest rate the UK has known.
Osborne will cut corporation tax by 1% next year, with three further annual reductions.
In another move to be welcomed by businesses, the Chancellor said the Government will reduce the small companies tax rate from 21p to 20p.
Osborne also said he will not make steeper cuts in capital spending, which will be viewed as positive in terms of job creation.
Elsewhere, as widely expected, the coalition Government will raise the threshold at which employers start to pay NI by £21 per week.
"We will make it cheaper for companies to employ people," said the Chancellor.
The Chancellor said a new model of economic growth will be built on a sustainable private sector.
Since November 2008
Share issue oversubscribed
PARTNER INSIGHT: For many advisers, outsourcing to a multi-manager or discretionary fund manager makes sense, allowing them to focus on the adviser-client relationship
Events, information and other services
An added tier of asset management can of course deliver additional benefits for certain investors, writes Graham Bentley - just be sure you can justify it to the regulator and, especially, the client