Corporation tax will fall to 24% over four years, Chancellor George Osborne revealed in yesterday’s Budget.

The decrease, which will be phased in over four years at the rate of 1% per year, is designed to make the UK more “competitive” with other countries in this area of taxation, Osborne explained.

Brian Wilkinson, executive board director at Randstad, said: “Budget measures, such as the cut in corporation tax and the increase in the National Insurance payment threshold, will be welcomed by employers.”

Kevin Green, chief executive of the Recruitment & Employment Confederation, says: “The reduction in the rates of corporation tax and small business tax will certainly make Britain a more attractive place to do business. This will bring new jobs to our economy. In addition the plan to reform corporate taxation over the next five years to make it simpler, clearer and more stable, is very welcome. It will offer businesses the basis on which to plan for the future.”