EU commissioner calling UK's corporation tax bluff

Does not believe George Osborne will follow through with tax cut...

Brexit, house prices, Britain, George Osborne, UK, Treasury,

File photo of British Chancellor George Osborne | Image: Ben Birchall / PA Wire/Press Association Images

EU commissioner for economic affairs Pierre Moscovici has cast doubt over UK Chancellor of the Exchequer George Osborne's proposed cut to Britain's corporation tax.

Moscovici opined on Tuesday that the move would be a bad idea and felt that it would not go ahead.

He said:

"Dropping to 15% doesn’t look to me like a good initiative to be getting involved in...

"And that would be a considerable loss of receipts for the British Treasury at a time when there is already a deficit that is much too high in Britain.

"So yes, at this point it doesn’t seem to me like the right plan, and I don’t think it will be George Osborne who goes ahead with it... Let’s be watchful but let’s not be excessively worried."

Osborne [pictured] announced his intentions to cut the UK's rate of corporation tax on Monday, saying that Britain had to make a statement that it was "still open for business".

He told the Financial Times:

"We must focus on the horizon and the journey ahead and make the most of the hand we've been dealt."