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Budget: Osborne lowers corporation tax

23 March 2011 Last updated at 13:11 GMT

The Chancellor, George Osborne has announced that he will lower the UK's corporation tax.

From April 2011, it will be reduced by 2% and will continue to fall by 1% in each of the following three years.

The Chancellor says it will mean the UK has the lowest rate of corporation tax in the G7.