Chancellor rebuffs demands for cut to corporation tax A scheduled rise in Corporation Tax in the autumn Budget will go ahead, the Chancellor has said, resisting a call from Tory backbenchers and reportedly Boris Johnson too for the increase to be scrapped. The levy is set to rise from 19% to 25% next year. But Rishi Sunak is looking to use some of the money raised to create a major new tax incentive to drive investment into the UK. Meanwhile, Jacob Rees-Mogg has said cutting taxes immediately may reduce inflation. The Brexit Opportunities Minister cited President Reagan’s move to cut taxes in a high interest rate environment in order to bring public expenditure under control – because it was unaffordable. The increased tax take and boost to the economy the tax cuts brought soon meant the budget deficit in the US got under control, Rees-Mogg explained.