CORPORATION tax in the UK is still the lowest in the G7 despite a rise to 25% announced in yesterday’s Budget, according to the Chief Secretary to the Treasury.

He told GB News: “The reality is that we still have the lowest corporation tax rate in the G7 and with what we call full expensing, where basically all investment in new capital and machinery can be set against tax, that will mean a £27 billion tax cut for businesses over the next three years.

That is a significant stimulant to growth in the economy. And what we saw and the question that should be asked to those who think we should maintain the 19%…what effect did that actually have on investment?

“And the truth is that it didn’t get us the investment that we wanted and so now we’ve linked those two together, we still have the most competitive cooperation tax in the G7.”

In a discussion with Eamonn Holmes and Isabel Webster on GB News, he said: “With respect to growth, it’s not as high as I would like but there’s lots of encouragement from the OBR and the fact that we are not going to be in a recession this year.

“Inflation is down and obviously the interventions we’ve made are designed to expand the labour market, encourage businesses to invest so that we can grow the economy faster, and provide us more choices and hopefully get that tax burden down.”

On the bailout of Credit Suisse bank, he said: “Treasury ministers don’t comment on market activities, but I’m very aware of what’s happening.

“I was the City minister for a very long time, four and a half years, and the regulators have been working very closely with those institutions affected.

“We’re working very closely with the Treasury to make sure that we could find a solution for Silicon Valley Bank subsidiary in the UK, which was a great outcome.

“But obviously, I’m aware of what’s happening and regulators in Switzerland and other jurisdictions will be working with institutions to try and bring clarity and stability to the markets.”

Asked about criticism that taxes for the wealthy have been cut, he said: “The driver for this policy was what the BMA wanted, as consultants and doctors across the country are deciding not to stay for the last ten years of their working life.

“We need those people to make that decision to continue to work in the NHS right now, given the backlogs. I recognise it has implications across the whole economy doing this way.

“But there are also lots of senior people in other professions who, if we could have done it quickly, which is very doubtful for just one profession, would eventually launch legal challenges.”