§ Mr. David ShawTo ask the Chancellor of the Exchequer if he will make a statement on the achievements of his Department and his policies in helping small businesses over the last 12 months compared with the previous 12 months; and if he will publish the performance indicators by which his Department monitors those achievements and the statistical results of such monitoring.
§ Mr. Major[holding answer 19 July 1988]: The Government's economic policies are designed to maintain a vigorous economy in which business and enterprise can flourish. Among the specific measures helpful to small businesses introduced in the last Budget were:
- Small companies' rate of corporation tax reduced to 25 per cent.
- Basic rate of income tax reduced to 25p and higher rates above 40 per cent. abolished (benefits unincorporated businesses).
- Capital gains rebased to 1982.
- Capital gains retirement relief increased.
- Inheritance tax threshold increased to £110,000 and four rates replaced by single rate of 40 per cent.
- Capital duty abolished.
- £ ½ million limit introduced on amount most companies can raise under business expansion scheme to target relief on smaller companies.
- Further improvements to employee share schemes.
- VAT registration threshold increased to £22,100, maximum permissible under EC law.
- Easing of VAT registration requirements.