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Property Development

Volume 497: debated on Tuesday 13 October 2009

To ask the Chancellor of the Exchequer what recent fiscal steps he has introduced to encourage commercial property development. (291985)

It is the Government's view that the best way to support the commercial property sector is to support the recovery of the wider economy. At pre-Budget Report 2008 and Budget 2009, the Government announced significant measures to support economic recovery in the UK, including additional support for business cashflow and investing in infrastructure, skills and innovation to provide the right environment for business growth.

These measures include:

reducing the main rate of VAT to 15 per cent until 31 December 2009;

measures to help SMEs facing credit constraints;

a deferral in the increase in the small companies rate of corporation tax;

temporary extension to loss relief rules; and

deferral of part of this year's business rates inflation up-rating.