§ Mr. Hillasked the Chancellor of the Exchequer if he will list the measures he has taken during the life of the present Government to encourage private risk capital into British businesses of all types; and if in further pursuit of risk capital he will seek to grant the same income tax concessions to direct investment in the equity of British business as are enjoyed by investors in pension schemes.
§ Mr. Peter ReesSpecific measures have included the business start-up scheme, the venture capital scheme, a reduction in the small companies rate of corporation tax and abolition of the apportionment rules for the trading income of close trading companies, extension of relief for interest on borrowings to invest in close companies, partnerships and industrial co-operatives, and others. We have also taken more general measures, including reductions in marginal rates of income tax, and the abolition of dividend, pay, price and exchange controls. We have increased the threshold for the investment income surcharge and increased the capital gains tax exempt allowance. All these have a part to play in increasing the rewards from risk investment. We have also taken steps to arrange the return to the private sector of public sector activities. I have noted the suggestion made by my hon. Friend in the second half of his question, but in my view the specific measures that we have already taken will prove to be the most helpful way of using the limited resources available to encourage investment where it is most needed.