The Chancellor claims to have ignited a “quiet revolution” by sharply cutting corporation tax.

Giving evidence to the Treasury Select Committee yesterday, Mr Osborne said people would think differently about tax cuts after research released to coincide with last week’s Autumn Statement found that lower corporation tax will have long-term benefits.

As he delivered the economic statement last week, the Chancellor unveiled new HMRC analysis which suggested higher investment, economic growth and wage rises would offset 60pc of revenue lost by cutting corporation tax.

Britain is on course to become one of the lowest corporation tax jurisdictions in the Western world. The Coalition has already cut the rate from 28pc to 23pc, and will lower it to 21pc, then 20pc, over the next two years.

David Fuller's view

Too many other UK chancellors, not to mention current wannabes in other parties, do not understand what generates economic growth.  Sadly, some of them do not even care what generates growth because their only interest is in redistributive policies.  These may sound plausible and fair to some, but in reality they only drive away businesses and curb employment, which mainly hurts those who are looking for jobs.

In contrast, George Osborne’s policies are helping UK businesses, which have been increasing employment.  The UK’s competitive tax rates, thanks to Osborne, are also attracting overseas firms to the UK, creating more economic growth and jobs in the process.  This is why the UK is leading European Union countries in economic recovery.