Europe

Britain plans to cut corporation tax to hold onto business

Britain's Chancellor of the Exchequer George Osborne prepares to lay a wealth at the Cenotaph in St Peter's Square, Manchester, England, where a commemoration is being held to mark the 100th anniversary of the start of the World War I battle of the Somme Friday July 1, 2016. Uncertainty about the country's future ties with the EU is weighing heavily on the British economy, prompting Treasury chief George Osborne to announce he was abandoning the government's long-held goal of achieving a budget surplus by 2020. (Danny Lawson/PA via AP)

Britain's Chancellor of the Exchequer George Osborne prepares to lay a wealth at the Cenotaph in St Peter's Square, Manchester, England, where a commemoration is being held to mark the 100th anniversary of the start of the World War I battle of the Somme Friday July 1, 2016. Uncertainty about the country's future ties with the EU is weighing heavily on the British economy, prompting Treasury chief George Osborne to announce he was abandoning the government's long-held goal of achieving a budget surplus by 2020. (Danny Lawson/PA via AP)  (The Associated Press)

Britain's Treasury chief plans to cut U.K. corporation tax to less than 15 percent to encourage companies to invest and ease business concerns about the country's vote to leave the European Union.

Treasury chief George Osborne says the cut is meant to underscore that Britain is "still open for business," despite the referendum results. A cut of about 5 percentage points brings Britain in line with Ireland's 12.5 percent rate.

Osborne told the Financial Times it was time to "make the most of the hand we've been dealt." He is urging the Bank of England to use its powers to avoid "a contraction of credit in the economy."

Some businesses based in London are considering leaving for other cities like Dublin, Amsterdam, Frankfurt and Paris to benefit from the large EU common market.