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Fiscal Policy

Volume 301: debated on Thursday 27 November 1997

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40.

To ask the Chancellor of the Exchequer what new fiscal measures he is taking to assist business. [16624]

The Government are committed to a tax system that encourages employment opportunities and work incentives for all; promotes savings and investment; is fair and is seen to be fair. This is good for the UK and for UK business. The level of taxation on business in the UK is the lowest of any major EU economy and lower than the OECD average.The Pre-Budget Report presented to Parliament on Tuesday launched a pre-Budget debate on the policies needed to deliver high and stable levels of growth and employment. My right hon. Friend the Chancellor announced further reform of corporation tax including another 1p cut in the main corporation tax rate and the abolition of advance corporation tax in 1999 together with a move to quarterly payments by larger companies. The spring Budget will include measures to reform capital gains tax to promote long-term investment.