Originally the plan was to cut corporation tax by 2% from April 2020, but this was ruled out as soon as the Conservatives came to power last December with a large majority.

Keeping the corporation tax rate at 19% will raise £46bn in year one, rising to £75bn a year by 2024-25.

The cut had been a Budget 2016 commitment but was a costly measure which was seen as an unnecessary reduction by many commentators as the UK has one of the lowest corporation tax rates in the G20.

The corporation tax main rate remains at 19% for the financial year beginning 1 April 2020. This maintains the rate at 19%, rather than reducing it to 17% from 1 April 2020.

The charge to corporation tax and the main rate will also be set at 19% for the financial year beginning 1 April 2021.

Legislation will be introduced in Finance Bill 2020 to amend the main rate of corporation tax for all non-ring fence profits to 19% for financial year 2020. The corporation tax charge and the main rate will also be set at 19% for all non-ring fence profits for financial year 2021.

Alex Henderson, tax partner at PwC, said: ‘While not unexpected, freezing the rate of corporation tax at 19% will be a significant tax measure and is forecast to raise £33bn for the Chancellor by 2024/25.

‘The announcement of a consultation on ‘tax conditionality’ suggests a theme of the UK being available to be “good corporate citizens”.

‘It will be important, however, that there will be a similar focus on ease of interaction with government and HMRC including a focus on simplicity and certainty, to make the UK comparatively one of the very best places to do business.’