Chancellor George Osborne has pledged to cut the rate of corporation tax to 15% in a bid to encourage business investment following the vote to leave the European Union.
Speaking to the Financial Times, Mr Osborne said the cut was part of his plan to make the UK a "super-competitive economy". It would give the UK the lowest corporation tax of any major economy.
He did not reveal when the change would take place. In March, the Chancellor revealed corporation tax would be reduced to 17% to 2020.
He said it was time for "Britain to "get on with it" to prove to investors that the country was still "open for business".
Last week, the Chancellor abandoned his target of achieving a budget surplus by 2020, following the Brexit vote.
But there are concerns over the move and the impact it will have on negotiations with the EU over the UK's withdrawal. Former head of the World Trade Organization, Pascal Lamy, claimed that tax was not the right area to effectively start the negotiations.
He told the BBC: "The UK is already activating one of the weapons in this negotiation, which is tax dumping, tax competition. I can understand why he [Mr Osborne] does that, because obviously investors are flowing out from the UK, and he wants to provide them with some sort of premium that would make them think twice before they leave the United Kingdom.
"He has to think about the impact of this on the continent. This will be seen on the continent as the start of the negotiation.
"And I'm quite convinced that at the end of the day, if you want a proper balanced win-win relationship in the future, starting with tax competition is not the right way psychologically to prepare this negotiation."
'Get Britain Growing'
Separately, Work and Pensions secretary Stephen Crabb MP has pledged a £100 billion fund to "Get Britain Growing" as part his campaign to become the next Conservative leader and Prime Minister.
Mr Crabb, who would replace George Osborne with business secretary Sajid Javid, said the fund would be used for infrastructure projects like flood defences, a national fibre optic broadband rollout and Crossrail 2.
Mr Javid claims the fund could create "hundreds of thousands" of jobs over a five-year period of investment.