In his Autumn Statement delivered before parliament this morning, George Osborne said the moves were an effort to create one of the most competitive tax systems in the world.

Osborne said he would also support new investment by small and medium sized businesses in particular, in relation to plant and machinery costs with a significant temporary increase in the Annual Investment Allowance, from £25,000 to £250,000 for two years as of 1 January 2013.

'This capital allowance will cover the total annual investment undertaken by 99% of all the business in Britain. It is a huge boost to all those who run a business, who aspire to grow and expand and create jobs,' Osborne said.