Plans to press ahead with exempting multinationals’ foreign dividends from tax were welcomed by businesses on Wednesday in a move to defuse much of the controversy surrounding the reform package.

But some advisers remained critical about the overall impact of the measures. Peter Cussons, of professional services firm PwC, said: “At a time when businesses are faced with difficult economic challenges as the recession continues, UK plc may find that the proposed rules are still too onerous to cope with,”