HC Deb 30 April 2002 vol 384 c685W
16. Rosemary McKenna

To ask the Secretary of State for Scotland if she will make an assessment of the impact of the Budget on SMEs in Scotland. [51362]

Mrs. Liddell

My right hon. Friend's Budget statement announced a package of reforms to the business tax system which will benefit small and medium-sized enterprises and provide longer-term economic stability and a competitive business environment. The simplification of the VAT regime will be of benefit to 107,000 small businesses in Scotland. The small firms rate of corporation tax will be reduced from 20 per cent. to 19 per cent., benefiting some 33,000 small firms in Scotland and some will now pay no tax at all on the first £10,000 of their profits. Small businesses in Scotland with turnover up to £150,000 will also benefit from the removal of automatic VAT penalties.