Small Businesses (Hansard, 13 December 1984)

§ 13. Mr. Fallon
asked the Chancellor of the Exchequer whether he will take further steps to reduce the tax burden on small businesses.

§ Mr. Moore
The Government have already provided substantial help to small businesses through tax reductions and other measures designed to encourage their growth. In particular, the tax reliefs available in the business expansion scheme enabled more than 400 small companies to raise about £80 million of new equity in 1983–84. I hope that further reductions in taxation will also be of benefit to small businesses.

§ Mr. Fallon
Does my hon. Friend agree that small rather than large businesses will be the major source of new jobs in the future? Will he confirm the rumour that my right hon. Friend the Chancellor intends to offer a continuing programme of tax relief to small businesses?

§ Mr. Moore
I am delighted at my hon. Friend's welcome for the Government's measures in relation to small businesses, but big businesses must also be successful to increase employment. I confirm that my right hon. Friend the Chancellor will seek in the Budget to help employment in small and large businesses alike through the tax system.

§ Mr. Stephen Ross
As the greatest difficulty faced by small businesses is high interest rates, what plans have the Government to lower interest rates for small businesses? Will they introduce a differential, with lower rates for small businesses to give them a chance of succeeding?

§ Mr. Moore
The hon. Gentleman is quite right to say that lower interest rates help. The reduction from more than 16 per cent. when the Government took office to 9½ per cent. today is a clear sign of our success. I know that the hon. Gentleman will not seek to press upon the Government demands for further public expenditure, which would drive interest rates up and deter small businesses.