§ Mr. LlwydTo ask the Secretary of State for Wales what is his estimate of the quantitative impact on inward investment into Wales of an increase of(a) 1p, (b) 2p and (c) 5p on corporation tax; and if he will make a statement. [20897]
§ Mr. RedwoodThe fact that corporation tax in the United Kingdom, along with levels of income tax, is among the lowest in European Union is undoubtedly an important factor in the attraction of inward investment but there are many other factors which need to be taken into account. These include the skill and flexibility of the work force; the competitive overheads that we have to offer; the excellent communications in this country; and the warm welcome offered by central and local government.