§ Mr. Flight
To ask the Chancellor of the Exchequer if it is his policy to encourage small firms to become limited companies; and if he will make a statement. 
§ Mr. Boateng
Government policy is to stimulate enterprise and entrepreneurship in its various forms, and not to support one group of businesses over another. Both incorporation and non-incorporation offer a range of benefits to small businesses. The choice as to whether to incorporate or not is influenced by multiple factors, many of which are firm-specific. for example the personal circumstances of the owner(s). The Government take the view that businesses themselves are best placed to assess the relative benefits of different legal structures, and to decide which is most appropriate for them.