HC Deb 01 May 1995 vol 259 cc39-40W
Mr. Llwyd

To ask the Chancellor of the Exchequer what is his estimate of the quantitative impact on inward investment into the United Kingdom of an increase of(a) 1p, (b) 2p and (c) Sp on corporation tax; and if he will make a statement. [20919]

Sir George Young

Taxation is one of a number of factors which businesses take into account when deciding the location for investment. The United Kingdom has the lowest main rate of corporation tax among the major

industrial countries. The UK's low corporation tax rates have contributed, along with the openness of the UK economy, low labour costs, a well educated and flexible workforce and good communications, to the UK becoming the second largest recipient of foreign direct investment worldwide.