Chancellor George Osborne has announced that he will cut corporation tax, reducing it to 22p by 2014, signalling Britain's competitiveness to foreign investors.
The rate was due to fall to 25% this year and will now be cut back to 24%, with two more 1p cuts to follow over the next two years.
Mr Osborne described his Budget as 'unashamedly pro business' and said that it would help the UK to 'earn its way in the world.'
He also said that there would be consultation on a simplified tax system for small businesses with a turnover of up to £77,000.
Addressing the Carbon Reduction Commitment, Mr Osborne said the Government is looking for major savings in the administrative cost of the CRC and will put forward an alternative environment tax this autumn if such savings cannot be found.
The Independent Office for Budget Responsibility (OBR) has revised the UK growth forecast for 2012 to 0.8%, up from 0.7%.
