Corporation tax hike SCRAPPED, Chancellor Kwasi Kwarteng announces in Mini Budget

A PLANNED hike in corporation tax has been AXED by Kwasi Kwarteng as part of the Chancellor's mini budget bonanza.

The levy was due to shoot up from 19 per cent to a whopping 25 per cent in April next year.

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But this morning Mr Kwarteng confirmed the hike won't go ahead.

The Chancellor told the Commons that by keeping taxes lower, major companies will have more money to invest in the British economy, ultimately helping it to grow.

And by reducing costs on businesses shoppers end up paying less for products - a win for consumers.

But the overall benefit will be impossible to calculate for now.

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The Chancellor said he wants London to be the go-to destination for businesses, beating New York, Paris and Frankfurt.

To tempt investors over the Chancellor also announced that the cap on bankers’ bonuses will be scrapped too.

A limit on fat cat bonuses was introduced by the EU in the aftermath of the 2007-2008 financial crash.

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Bankers can only earn less than 200 per cent of their salary as an extra - but the sky is the limit now.

Corporation tax is just one of a series of levies being burned in the Chancellor’s fiscal bonfire.

Stamp duty has also been slashed, alongside the National Insurance hike, which will be axed from November 6.