Jeremy Hunt may give UK firms tax relief on capital investment

Chancellor, who announces budget on 15 March, considers move to offset rise in corporation tax

Jeremy Hunt is considering giving UK companies tax relief on capital investment at next week’s budget to offset a sharp rise in corporation tax from April and the end of the government’s £25bn “super-deduction” regime.

Business leaders and some Conservative MPs have called on the chancellor to soften the planned rise in corporation tax from 19% to 25% to allay growing fears over the health of the British economy and faltering levels of company investment.