Osborne promises 'biggest tax cuts in a generation'

Chancellor of the Exchequer George Osborne during his visit to the National Graphene Insitute in Castleford, Manchester. Credit: Lynne Cameron/PA Wire

British workers and businesses will this week benefit from biggest tax cuts in a generation, George Osborne will claim.

Measures including the rise in the income tax personal allowance to £10,000 and cuts in business taxes will be brought in over the coming days.

Tomorrow the corporation tax rate will be cut by 1% to 21% and reforms to business rates will be introduced. The annual investment allowance for firms will be doubled to £500,000.

The £10,000 income tax personal allowance comes into effect on Sunday, along with the employment allowance which cuts employers' National Insurance contributions by up to £2,000.

Giving a speech in Essex later today, Mr Osborne will say that Sunday will be "the culmination of this week that sees the biggest reduction of business and personal tax in two decades".

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