§ 7. Mr. Mark Hoban (Fareham)What estimate he has made of the impact of recent changes in businesses taxes on the manufacturing and service sectors. [11332]
§ Mr. BoatengThe Government keep all taxes under review and decisions will be made as part of the normal Budget process. Measures to build opportunity and prosperity for all were set out in the "Financial Statement and Budget Report", which can be found in the House of Commons Library.
§ Mr. HobanAccording to a recent survey by the Recruitment and Employment Confederation, job losses have increased every month for the past five months; permanent job placements have fallen every month for the past six months. Will the right hon. Gentleman therefore assist the work that the Bank of England has done today to reduce the interest burden on businesses by pledging that the Government will not increase the tax burden on British business?
§ Mr. BoatengWe have the lowest unemployment rate for 25 years. The Government cut corporation tax by 3 per cent., so it is the lowest in United Kingdom history. We cut corporation tax for small companies from 23p to 20p. We have become the party of business and job creation. If only Opposition Members had learned that, they would not be where they are today.
§ Mr. Nigel Beard (Bexleyheath and Crayford)Does my right hon. Friend agree that both the manufacturing and service sectors of business in Britain will benefit from Government policies to enhance and encourage enterprise? How does Britain compare with its international competitors as an enterprise culture?
§ Mr. BoatengWe have the lowest corporation tax rate in the European Union. Hon. Members on both sides of the House will recognise that our new proposals on capital gains tax mean that we have a more attractive regime than that in the United States. By every possible indicator, this country is at the forefront of enterprise culture, which is entirely due to the measures introduced by the Chancellor since 1997.
§ Mr. David Lidington (Aylesbury)Has the Minister not recognised that statistics from his own Department show that this country's engineering output was down by more than 6.5 per cent. last year? For many engineering companies and others, the bill for the climate change levy far outstrips any compensatory rebate in national insurance. The Confederation of British Industry is telling the Minister that companies have to put people out of work so that they can afford to write cheques for his energy tax. Will he give a commitment to review urgently a tax that is already costing the country engineering jobs that we can ill afford to lose?
§ Mr. BoatengThe hon. Gentleman's righteous indignation is not borne out by the facts. The tax of which he complains was engineered by Lord Marshall, the former president of the CBI. It enables us to deliver our Kyoto obligations and has been widely welcomed by industry as a contribution to ensuring that we have a sustainable environment. Across manufacturing and service industries, it is revenue neutral. The hon. Gentleman's allegation is without foundation.