UK corporation Tax to be cut from 30% to 28%

Business groups have given a mixed reaction to the revamp of corporation tax which will see the headline rate cut from 30% to 28% in April 2008.

While business was pleased to see the main rate cut, there was dismay among smaller firms that the rate they pay would rise from 19% to 22% in 2009.

Analysts also said that changes to tax allowances would benefit service sector firms but manufacturers might suffer.

"There will be losers as well as winners," the CBI said. Read more

• HM Treasury