Could Businesses Be In For a Much Needed Tax Lifeline?

With small business confidence plunging to record lows and the owners of big businesses cutting back on investing and staff hiring, could the Chancellor have something up his sleeve to help everyone out?

Corporation tax is one area mentioned by George Osborne as a way to reduce the economic impact of Brexit on businesses. A goal of 15 percent has been set which would be a significant boost if it becomes reality.

Corporation tax is already scheduled to be reduced to 17% by 2020 but this was when the UK was still part of the EU and the future looked less uncertain.

Brexit has had the effect of shattering business confidence even before the votes were counted and there were already signs of a slowdown in the early part of 2016 as service industries were once again the main engine of the economy.

The decision to leave cannot now be reversed despite petitions for another referendum and the country will need to work together to navigate some potentially stormy economic waters.

Whether the Chancellor can afford to reduce the tax burden on businesses in the next couple of years will largely depend on whether this is the case.