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The Conservative party has moved to steal a march on chancellor Gordon Brown's Budget later this week by pledging to cut corporation tax by 3p per £1.

Shadow chancellor George Osborne says that his party's plans could save £4.5 billion.

It is no coincidence that the Tories' first concrete tax policy commitment comes two days ahead of the chancellor's 11th, and probably last, Budget announcement.

"I think British business is facing a dual problem," Mr Osborne told BBC Radio Five Live's Wake up to Money programme after announcing his plans.

"One is the corporation tax rate, which used to be pretty competitive compared to the rest of the world, has become very uncompetitive against most developed economies.

"And second of all, the tax code as a result of ten years of Gordon Brown has become incredibly complicated, and the administration of tax is very costly for businesses," he added.

Mr Brown indicated last week in an interview with the Financial Times that a corporation tax cut could be imminent by stressing that his Budget would be for "business and for the future of the British economy".

But analysts have raised doubts as to whether the economics of the chancellor's hints are feasible.

"Frankly, I don't think Gordon Brown will be able to afford it because his public finances are not looking terribly good," Ruth Lea, director of the Centre for Policy Studies thinktank, told the Today programme.

"There is already public sector borrowing this financial year of about £40 billion and it probably won't be much better next year."

And responding to Mr Osborne's proposals, David Frost, director general of the British Chambers of Commerce, commented: "The Tories' pledge to cut corporation tax is an encouraging step in the right direction.

"From having one of the lowest rates of corporation tax in the EU we have moved to having one of the highest, threatening our competitiveness and ability to attract inward investment."

In addition to corporation tax cuts, green measures such as raising levies on the worst-offending vehicles in terms of carbon emissions are expected to be introduced in Wednesday's Budget, as well as moves to reform Britain's inheritance tax system.