HC Deb 07 March 1996 vol 273 cc443-4
7. Mr. Steen

To ask the Chancellor of the Exchequer what fiscal measures he plans to assist small businesses further. [17623]

The Economic Secretary to the Treasury (Mrs. Angela Knight)

Thriving, growing small businesses are vital for the health of the economy. The last Budget introduced a number of measures to assist small businesses.

Mr. Steen

In the spirit of deregulation, will the Chancellor consider establishing a penalty system for every Government Department that produces unnecessary rules and regulations—perhaps fining them £1,000 per page? Is my hon. Friend aware that 96 pages of rules and regulations are being introduced under the Activity Centres (Young People's Safety) Act 1995, when the Government said that they would have a light touch and introduce the minimum number of rules and regulations? The Government have an opportunity to recoup money from Departments which overspend on rules and regulations and to join the Prime Minister's crusade for fewer rules and regulations. The Chancellor could do that immediately and cut expenditure from the public purse tomorrow.

Mrs. Knight

My hon. Friend's concern about over-regulation is well known, and I congratulate him on always promoting the cause of deregulation. Over the past nine months, I have used the deregulation route to reduce regulations on building societies, industrial insurance, friendly societies and credit unions, and now to truncate checks. The Central Statistical Office has been asked to reduce its burden on business by 25 per cent. That is not perfect, but I hope that my hon. Friend considers that we have taken a few steps in the right direction.

Mrs. Anne Campbell

Will the Minister consider what fiscal measures could be introduced to help businesses and their employees with the costs of child care?

Mrs. Knight

The hon. Lady makes the real point that all working mothers are looking for child care. Most working mothers prefer a grandma or aunt to look after their children whenever possible, as the child's stability should be paramount. The various nursery education measures that the Government have brought in and are introducing will help. We have assisted with child care in many areas.

Mr. John Greenway

Does my hon. Friend agree that as the majority of small businesses are run by self-employed people, lowering income tax is the best fiscal measure that the Government could possibly introduce? When it comes to deciding which party is the party of small business, the answer must surely be the party that lowers income tax—not the party that cannot make up its mind.

Mrs. Knight

My hon. Friend is exactly right. The Budget will reduce taxation, which will benefit small businesses. We also ensure that the burden on small businesses does not increase, as it would under Labour—especially through its proposals for a tax on jobs.