* Johnson and Corbyn address business leaders
* Johnson puts on hold further cuts in corporation tax
* Corbyn reiterates that Labour would raise taxation
(Adds Labour's Corbyn, background)
By David Milliken
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 use the money for
spending on health and other priorities.
His comments addressed a central issue in a Dec. 12 election
as Johnson has been under pressure to show how he would pay for
a plan to reverse cuts to many public services over the past
decade and boost infrastructure investment.
"We are postponing further cuts in corporation tax," Johnson
told business leaders at a conference organised by the
Confederation of British Industry, an employers' group.
"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)."
Britain's main corporation tax is among the lowest among the
world's industrialised economies but the government had been due
to cut it to 17% next year from 19% now.
In September, finance minister Sajid Javid announced
Britain's 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, who called the election to try to secure a majority
in parliament that would back his plan for Britain's departure
from the European Union, said on Monday he would keep Javid as
his finance minister if their Conservatives win the election.
British media have reported tensions between the teams of the
two most powerful men in the government.
LABOUR PLANS HIGHER TAXES
The postponed corporation tax cuts received a cautious
welcome from the CBI's director-general.
"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.
Labour wants to raise the corporation tax rate and income
taxes for top earners to help fund its own, bigger spending
plans.
"Taxation is going to change under Labour. We've made no
secret of that. We’ve been very, very clear that the richest 5%
will pay more," Corbyn told the CBI after Johnson spoke.
"And over the lifetime of the government, we will increase
corporation tax to no higher than the 2010 levels."
In 2010, the corporation tax rate stood at 28%. Before the
2017 election, Labour said it would raise the rate to 26%.
With the prospect of widespread infrastructure
nationalisation under Labour, and an abrupt Brexit possible
under Johnson's Conservatives, many business leaders say they
face unprecedented levels of uncertainty.
"I believe we are facing a danger that could get in the way
of a bright future, and it takes the form of extreme ideology.
And we see it on both sides of the political divide," the CBI's
Fairbairn said.
($1 = 0.7712 pounds)
(Reporting by Guy Faulconbridge and David Milliken; writing by
William Schomberg; editing by Andy Bruce and Timothy Heritage)
