After the Chancellor announced an increase in the rate of corporation tax at the Spring Budget, experts have been analysing the potential effects the rise will have on the UK economy.

Although the tax rise will make the UK less competitive with international rivals, IEA Economics Fellow Julian Jessop said: “It’s not just the headline rate, it’s how the allowances work that count. Allowances become more generous with the super deduction”.

Jessop believes that over the coming years the UK will be “around the bottom of the [international league] table. But once the Chancellor’s raised the main rate and removed the main super deduction, we’ll be right towards the top”.

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