HC Deb 30 April 1981 vol 3 cc907-8
Q 4. Mr. Home Robertson

asked the Prime Minister what progress has been made with the implementation of that part of the Gracious Speech which referred to the encouragement of new businesses and to measures to permit small firms to expand and prosper.

The Prime Minister

The Chancellor's recent Budget included a considerable number of measures to help small businesses and to encourage enterprise and risk-taking, for instance the business start-up scheme, the loan guarantee scheme and the venture capital scheme, raising the threshold of value added tax, investment interest relief scheme, new forms of stock relief and also the review of the statistical services to save small businesses 1 million forms a year.

Mr. Home Robertson

I wonder whether the Prime Minister realises that her Government have succeeded in doubling the rate of liquidations among British companies to almost 200 every week. Will she consider the crippling effect on companies throughout the country of the high tax on petrol? Even if she succeeds in fobbing off some of her Back Benchers with concessions on diesel fuel, surely she must be aware that many companies, especially in rural areas, depend every bit as much on petrol as on derv.

The Prime Minister

There is a higher number of liquidations than previously, but there is also a considerable number of companies starting up and there are good grounds for hoping that more will start up and expand. With regard to what the hon. Gentleman said about tax, I repeat what I said to the right hon. Gentleman the Leader of the Opposition. If he wants further tax reductions, he will either have to have cuts in expenditure or increases in tax elsewhere.

Mr. Best

Is my right hon. Friend aware that, as from today, there is less likelihood of hon. Members and small businesses being accosted by young ladies because the Minister of State, Civil Service Department, has announced that three quarters of a million statistical returns will be cut out, at an annual saving of £25 million and 2,500 posts?

The Prime Minister

I am aware of that. The review of the statistical services was excellent and will result in an annual saving of about £25 million as well as cutting out many forms, reducing Government scrutiny and helping small businesses and others.