(Adds CBI reaction, background)
LONDON, Nov 18 (Reuters) - British Prime Minister Boris
Johnson said on Monday he was putting on hold further cuts in
corporation tax and told voters he would pump the money into
services such as health instead, addressing a central issue in
the Dec. 12 election.
"We are postponing further cuts in corporation tax," Johnson
told business leaders at a conference organised by Britain's
main business lobby, the CBI.
"This saves 6 billion pounds ($7.8 billion) that we can put
into the priorities of the British people, including the NHS
(National Health Service)," he said.
Britain had been due to cut its corporation tax rate to 17%
next year, down from 19% now, which is already one of the lowest
among the world's big industrialised economies.
Johnson has faced questions about how he would pay for the
extra public spending that he has promised, without ramping up
borrowing sharply.
In September, his finance minister Sajid Javid announced the
biggest increase in day-to-day spending in 15 years in what was
widely seen as an attempt to counter the spending promises of
the left-wing opposition Labour Party.
Johnson's announcement received a cautious welcome from the
head of the CBI.
"Postponing further cuts to corporation tax to invest in
public services could work for the country if it is backed by
further efforts to the costs of doing business and promote
growth," Carolyn Fairbairn said in a statement.
($1 = 0.7712 pounds)
(Reporting by Guy Faulconbridge and David Milliken; writing by
William Schomberg; editing by Michael Holden and Andy Bruce)
