Hammond hints at tax cuts to keep Britain competitive
Philip Hammond has indicated that he is prepared to cut taxes if the UK is denied access to the common market after Brexit. In an interview with the German Welt am Sonntag newspaper, the chancellor suggested Britain may be forced to change its "economic model" if it is locked out of the single market. Asked if the UK could become a "tax haven" by further lowering corporation tax, he said that the government would not "lie down" and would "do whatever we have to do" to remain competitive. However, Mr Hammond also said he was optimistic a reciprocal deal on market access could be struck, and that he hoped the UK would "remain in the mainstream of European economic and social thinking".
Source: Financial Times (16/01/2017)