labels: economy - general
UK Budget: corporate taxes cut, expenditure tightened news
22 March 2007

London: Gordon Brown UK's chancellor of the exchequer has cut corporate taxes in his 11th budget and announced measures to help families tighten expenditure. Laying emphasis on education and training schools in UK will get billions of pounds to upgrade facilities.

Brown told the parliament that the move would expand prosperity and fairness for Britain's families - and was built on the foundation of the longest period of economic stability and sustained growth in the country's history.

Brown told the British Parliament that headline corporation tax would be cut to 28 per cent from 30 per cent from April 2008, in a bid to fight accusations that Britain is losing competitiveness. Business groups have clamoured for lower corporation taxes to keep Britain competitive in a rapidly globalising economy.

In a range of policies aimed at reducing Britain's carbon dioxide emissions, Brown raised duty on petrol for the second time in three months after a 3-1/2 year freeze and increased road levies on the most polluting cars, such as 4x4s.

He also announced an extra £400 million (approximately Rs3,458 crore) of defence spending and 86 million in security and counter-terrorism funds.

The British economy is expected to grow by around 3 per cent this year - the most in four years and better than any other Group of Seven country. Brown said UK would grow between 2.5 and 3.0 per cent in the coming two years and inflation rate would fall to the government's 2 per cent goal this year and remain on target in 2008 and 2009.

However, after 10 years in power, the ruling Labour party is trailing behind the Tories in the polls, mainly due to popular anger over the Iraq war and a series of personal and financial scandals.

 search domain-b
UK Budget: corporate taxes cut, expenditure tightened