Zahawi, who took over on Tuesday afternoon after Rishi Sunak resigned, said he wanted to look at planned increases in corporation tax to ensure British companies remain competitive. He told Sky News on Wednesday: “I will look at everything. There is nothing off the table. I want to be one of the most competitive countries in the world for investment.” He added: “I know that boards around the world, when they make investment decisions, are looking at the long term and the only tax they can compare globally is corporation tax. I want to make sure we are as competitive as we can be while maintaining fiscal discipline.” In a separate interview with the BBC, Zahawi said: “Of course I will look at where else I can make sure that the economy remains competitive and dynamic with our European neighbors and the rest of the world as well.” Sunak said last year when he announced the company tax hike – the first since 1974 – that greater incentives to invest would mean only companies that did not invest would pay higher levels of tax. Zahawi, a former oil industry adviser, is known to be a supporter of lower taxes and most recently opposed a windfall tax on oil and gas companies operating in the North Sea. He told Sky that his priority was to “rebuild and grow the economy”. But in a round of television and radio interviews, he stressed that any spending plans, including possible tax cuts, should not be diverted from the need to limit increases in borrowing and reduce inflation. “The prime minister wants to ensure that we have fiscal discipline. I share that focus with him,” he told the BBC. He told Sky: “The important thing is to get inflation under control, to be fiscally responsible. The first thing we have to do is make sure we’re really careful, whether it’s public sector pay, is that inflation doesn’t continue to be fueled. Today, we face a global battle with inflation.” Subscribe to the Business Today daily email or follow Guardian Business on Twitter @BusinessDesk In an interview with LBC Radio, he said he was concerned about the sharp rise in borrowing costs. “The debt we service this year will be £83 billion. Last year, it was at £20bn. So a fourfold increase in debt service.” Zahawi added: “Inflation if allowed to get out of control is deeply, deeply damaging, especially to the most disadvantaged families in society that we are trying to help.”
