To ask Chancellor of the Exchequer what recent assessment has been made of the appropriateness of tax breaks for (a) operations based on debt and (b) self-employment and sub-contracting which place those arrangements at an advantage over those for direct employment; and if he will make a statement. (133282)

The Government monitor all aspects of the tax system on an ongoing basis and policy changes were announced in the recent Budget. In addition, on 8 March I announced a review of the current tax deductibility rules applying to the use of shareholder debt where it replaces the equity element in highly leveraged deals in the light of market developments. The review aims to ensure that existing rules are working as intended, consistent with the Government’s focus on ensuring that commercial decisions are taken on a level playing field, to maximise efficient working of the investment chain.