To ask the Chancellor of the Exchequer what is the cost in 1990–91 and in a full year of raising the lower limit for the reduced rate for corporation tax from £150,000 to £200,000; and how many firms would be affected.

[holding answer 9 February 1990]: About 20,000 companies would be affected at a cost of £30 million in a full year and £20 million in 1990–91, assuming company incomes at 1989–90 levels and that the change took effect from 1 April 1989.