Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect on the public finances of reducing the rate of corporation tax from 19 per cent to 17 per cent.

The estimated Exchequer impact of future corporation tax rate reductions are certified by the Office for Budget Responsibility. The most recent estimates can be found in Table 2.2 of Spring Budget 2017 and Table 2.2 of Budget 2018.

The government is committed to delivering a competitive tax regime. Low corporation tax rates support the economy by increasing the profits retained by companies – enabling them to reinvest in their business, create jobs, and increase wages.

Despite the rate cuts since 2010, onshore corporation tax revenues have increased by over 50 per cent – from £36.2 billion in 2010-11 to £55.7 billion in 2017-18.