The Chancellor has announced plans to cut corporation tax by a further 1% - this means the CT rate will go down to 21% as of April 2014.

The moves are further to previously announced plans which reduced the main corporation tax rate from 28% in 2010 to 24% in 2012.

Osborne said he wanted Britain to have the most competitive business tax regime of any major economy in the world.

'I have already cut the main rate of corporation tax from 28% to 24%, and it is set to fall further to 22%. This has helped British companies and frankly left other countries scrambling to keep up. They will have to try harder. For I am today cutting the main corporation tax rate again by a further 1%. In America, the rate is 40%; in France it is 33%; in Germany it is 29%. From April 2014, the corporation tax rate in Britain will stand at 21%. This is the lowest rate of any major western economy. It is an advert for our country that says: come here; invest here; create jobs here; Britain is open for business,' Osborne said.

Stella Amiss, corporate tax partner at PwC, said the statement was a solid and measured statement for British business.

'The Chancellor made a surprise announcement to further reduce the main rate of corporation tax. A further 1% rate reduction brings the rate to just 21% by 2014. This sets the UK apart on the global landscape and ensures the UK is competitive.

'The Chancellor has listened to business in producing a Statement that delivers stability. The Chancellor has not gone back on the corporate tax reform measures announced in recent Budgets and there was no change to rules affecting interest deductibility or availability of loss relief. This underlines the government's drive to deliver on the policy of Britain being open for business,' said Amiss.