Brexit

Cutting corporation tax will make Theresa May's Brexit talks 'more difficult', European leaders warn

Theresa May's Brexit negotiations with the European Union will be "more difficult" if she cuts corporation tax, European leaders have warned.

Stefan Loefven, the Swedish Prime Minister, said that any "aggressive" tax cuts by Britain will damage relations with the European Union.

It comes as Philip Hammond, the Chancellor, prepares to "reset" Britain's fiscal policy in his Autumn Statement by cutting taxes and borrowing to invest in infrastructure.