Peer argues for further cuts to Corporation Tax.

The UK’s Corporation Tax could be cut to as little as 12.5 per cent a former cabinet minister has suggested.

Lord Francis Maude, an ex-MP who previously served as trade minister, believes that the tax could be set at a level considerably less than the 20 per cent which is currently levied.

He has argued that a sizeable reduction would be a major boon as Britain sets to entice fresh investments ahead of its departure from the European Union.

“It is already at a competitive rate, but it is one of the things the Government can do – not necessarily immediately, but over time,” said Lord Maude.

“That’s unmistakably part of making Britain the best place in the world to attract investment from business.

“A good benchmark for me is the Irish rate, which is 12.5 per cent, and the closer we get to that the happier, I think, a lot of businesses will be and the more attractive Britain will be as a destination for investment.”

The Peer was speaking at a trade event which took place at Birmingham’s NEC earlier this week. Addressing delegates he also argued the case for Theresa May’s administration to negotiate a bespoke trade agreement with the EU rather than trying to emulate the arrangements in place for other countries.

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