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Mrs. Curtis-Thomas
To ask the Chancellor of the Exchequer what steps the Government have taken to encourage investment in the stock of physical capital in industry. [124216]
John Healey
This Government are committed to encouraging greater levels of investment within UK industry. Investment is a key driver of productivity and is also key to raising competitiveness and long-run living standards.Since 1997, the Government have introduced a number of macro-and microeconomic reforms aimed at building stability, boosting productivity and producing an environment conducive for investment for the long term, for example:
The R and D tax credit for both small and large businesses;
100 per cent. capital allowances for ICT expenditure and enhanced first-year allowances for all plant and machinery for small and medium-sized businesses;
Reduced corporation tax rates, including the small business rate of 19 pence, with OECD figures showing that the UK has one of the lowest tax burdens in the EU; and
Regional Development Agencies set up to promote efficiency, investment and competitiveness.