§ Mr. Harry GreenwayTo ask the Chancellor of the Exchequer what fiscal measures he is taking to encourage investment in(a) the private sector and (b) the public sector; and if he will make a statement.
§ Mr. DorrellThe Government are taking a number of measures to encourage investment:
- (i) in his November Budget last year my right hon. and learned Friend announced three tax measures to attract equity investment into unlisted companies: the Enterprise Investment Scheme, Venture Capital Trusts and an extension of Capital Gains Tax reinvestment relief;
- (ii) the Government now make a clear distinction between capital and current spending in the fiscal projections. This recognises that capital spending generates a future stream of benefits which current spending does not;
- (iii) the Private Finance Initiative will lead to more and better capital projects by allowing the public sector to draw on private sector management skills and financial resources.
More generally, the Government have delivered the best possible economic environment for investment: low inflation, low interest rates and a clear strategy to reduce the PSBR, all of which provide the key to sustainable growth.