Gordon Brown tried to mend fences with business yesterday by acknowledging corporate anger over the latest tax increases and promising to cut corporation tax further, in an attempt to stem the exodus of UK companies abroad.

The Prime Minister Brown told the Institute of Directors that a review of tax announced by Chancellor Alastair Darling on Tuesday “can look  at all aspects” of the tax regime.

And he acknowledged that communication between government and business was not as good as it should be. “The dialogue, I agree, can be better and will be better,” he said
Brown, added: “Our aim, I tell you, is to reduce corporation tax even further when we can afford to do so. I want to go further and we’re looking at how we can do it.”

Brown was speaking in the wake of recent decisions by Shire Pharmaceuticals and United Business Media to move to the Republic of Ireland for tax reasons. WPP and International Power have also voiced their dissatisfaction and are also considering moving.