UK's Labour pledges to cap corporation tax at 25% if it wins election

(Adds quotes, context) LONDON, Feb 1 (Reuters) - Britain's opposition Labour Party will cap corporation tax at 25% if they win the next election and will look to cut that rate if needed, the party's finance policy chief Rachel Reeves said on Thursday in a pitch to business leaders.

(Adds quotes, context) LONDON, Feb 1 (Reuters) -

Britain's opposition Labour Party will cap corporation tax at 25% if they win the next election and will look to cut that rate if needed, the party's finance policy chief Rachel Reeves said on Thursday in a pitch to business leaders. "We will cap the headline rate of corporation tax at its current rate of 25% for the duration of the next parliament. And should our competitiveness come under threat, if necessary, we will act," Reeves said.

Labour is seeking to position itself as the most business-friendly party in Britain ahead of a general election expected in the second half of this year. Labour currently has a large lead over the governing Conservative Party in opinion polls. The rate of corporation tax in Britain has fallen from 30% in 2007 to 19% in 2017. It was raised in April 2023 to 25%, the highest level since 2011.

Reeves also announced plans to maintain permanent full expensing - a tax break on business investment - and to publish a roadmap for business taxation in the first six months of a Labour government