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UK to slash corporation tax after Brexit blow

Monday, July 04, 2016 - 01:35

British Finance Minister George Osborne is cutting corporation tax to less than 15 percent in an attempt to offset the shock to investors of the country's decision to leave the European Union. And as Laura Frykberg reports, it comes as the face of the Brexit campaign announces he is stepping down.

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The face of Brexit, makes his exit. UKIP leader Nigel Farage says he's stepping down. Having achieved his goal of getting Britain to vote to leave the EU. (SOUNDBITE) (English) UKIP LEADER, NIGEL FARAGE, SAYING: "During the referendum campaign I said, I want my country back. What I'm saying today is I want my life back, and it begins right now." Farage says he's not a career politician. Those who are though, now have a big burden. Keeping business in Britain, without the lure of the EU single market. UK Finance Minister George Osborne has one solution, slashing coporation tax. Making Britain a competitor with its alluring neighbours. (SOUNDBITE) (English) CMC MARKETS ANALYST, MICHAEL HEWSON, SAYING: "Even if Mr. Osborne does cut corporation tax to 15 percent as is mooted, it will still be above Ireland's corporation tax of 12.5 percent. So I think Mr. Osborne needs to move on, he needs to look far longer term." Osborne appears to be consdering that too. He's reportedly thinking of increasing bank lending, maintaining financial credibility and investing more in northern England. More might be needed though. Financial data company Markit says the construction industry had its worst contraction in seven years last month ahead of the vote. The sector accounts for six percent of the economy.

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UK to slash corporation tax after Brexit blow

Monday, July 04, 2016 - 01:35