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Call to cut corporation tax to 20% to boost economy

CORPORATION tax should be slashed to 20% to jump start the economy, according to a paper published by the right-leaning Centre for Policy Studies think tank today.

In the research paper, tax lawyer David Martin argues introducing a lower rate from the start of the 2012/13 financial year would be a "quantum leap" which would stimulate companies to invest and grow.

The UK Government has agreed a 1% annual cut between now and 2014 which will see the rate fall from 26% to 23%.