Macron government announces £10 bn in tax cuts

The announcement by Philippe, a conservative, came as France steps up efforts to lure City firms to Paris after Brexit.

The government says it will bring France's public deficit below the EU target of 3 per cent of GDP this year — for the first time since 2007.

Philippe said the deficit would then fall to 2.7 percent of GDP next year thanks to savings of about £18 billion.

However, France's independent auditor last month revealed a funding shortfall of more than £7bn in this year's budget. It predicts that the deficit will remain above the EU limit. The government had earlier said it would postpone tax cuts promised by Mr Macron for two years, but decided to bring them forward after an outcry by business leaders.

Philippe said housing taxes paid by homeowners and tenants would be drastically cut, reducing the tax burden by more than £2.5 billion.

Corporation tax is to be reduced to 25 percent by 2022. Companies currently pay a minimum of 33.3 percent, rising to 50 percent depending on revenue.

The prime minister also told international finance executives that he was committed to reducing payroll taxes on bankers and overhauling France's controversial wealth tax on assets worth more than €1m, to be replaced by a tax on property holdings."We commit to a resolute approach with determination and consistency in order to boost the financial attractiveness of the Paris financial centre," Mr Philippe said.

HSBC plans to move 1,000 jobs from London to Paris if there is a hard Brexit, chief executive Stuart Gulliver has said. JP Morgan Chase would also move jobs to other European cities, said its chairman, Jamie Dixon. Another factor attracting companies to France is Macron's plan to reform rigid labour laws to make it easier for employers to hire and fire staff and reduce redundancy payoffs.