§ 21. Mr. Sheldonasked the Chancellor of the Exchequer what estimate he has made of the effect of a reduction in corporation tax upon the level of industrial investment.
§ Mr. Maurice MacmillanThe recent reduction in corporation tax will make an immediate contribution to the liquidity of private industry. But it is not possible to make a separate estimate of its effect on the overall level of investment.
§ Mr. SheldonThe Chancellor has stated that it is the purpose of the Government's policies to help to create a climate favourable to investment, but is it not clear that the present climate is far from favourable? Cannot he do something before the Budget Statement, by at any rate stating that the Government refuse to countenance for very much longer a level of unemployment as high as it is now?
§ Mr. MacmillanThe views of my right hon. Friend and the proposals he has put forward for beginning to create a climate more favourable to investment are well known. I cannot commit him to anything further before the Budget.