§ 13. Mrs. Louise Ellman (Liverpool, Riverside)What plans he has to introduce tax and fiscal measures to encourage investment in small and medium enterprises in the regions. [56871]
§ The Financial Secretary to the Treasury (Dawn Primarolo)The Government are examining how best to develop an environment which encourages investment and growth in enterprising small and medium businesses.
§ Mrs. EllmanWill my hon. Friend back the channelling of support for small and medium enterprises through the regional development agencies so that regions such as the north-west, and particularly Merseyside within the north-west, can improve their rates of small and medium business formation and success?
§ Dawn PrimaroloI can confirm that the regional development agencies, starting from next April, will have to draw up regional and economic strategies, which will cover encouraging investment and innovation. They will, of course, address themselves to small and medium businesses.
§ Mr. John Bercow (Buckingham)If the Financial Secretary wants to encourage investment in small and medium enterprises in the regions of the United Kingdom, why is it that she is not prepared flatly to condemn the £40 billion additional tax and regulatory cost put upon those enterprises in the lifetime of this Parliament, a policy that the Confederation of British Industry, the Institute of Directors, the Federation of Small Businesses and the Forum of Private Business are united in condemning?
§ Dawn PrimaroloWe just need to remind the hon. Gentleman that it is this Government who have cut the small business rate for corporation tax; abolished advance corporation tax, giving small and medium companies £1 billion in cash-flow benefits; enhanced venture capital reliefs; and increased the taper on business assets to help entrepreneurs. As a result, unemployment in the hon. Gentleman's constituency has been reduced by 28 per cent., but he does not have the good grace to say that.