John McDonnell: Don't make Britain a tax haven

Shadow chancellor John McDonnell warned today against “offering up” Britain as a tax haven on the European Union’s border.

The senior Labour MP spoke out after George Osborne signalled that he wants to cut corporation tax to below 15 per cent as part of a plan to give Britain a post-Brexit boost.

The Chancellor said the UK must show it was “still open for business” following the decision to leave the EU, as he set out plans to create a “super-competitive economy”. Slicing more than five per cent off the current rate of corporation tax would see Britain close in on Ireland’s 12.5 per cent levy.

He told the Financial Times: “We must focus on the horizon and the journey ahead and make the most of the hand we’ve been dealt.” But Mr McDonnell criticised the “panic tax cuts promises”, adding: “It’s not constructive to get into this situation where you are virtually offering up to Europe Britain as a tax haven.