§ Mr. SwireTo ask the Secretary of State for Trade and Industry what representations she has received from business groups regarding the effect of the 2002 Budget on the(a) competitiveness and (b) productivity of UK businesses. [55907]
§ Ms HewittI refer the hon. Member to the answer I gave on 15 May 2002, Official Report, column 661W.
Businesses and their representatives have welcomed the cuts in corporation tax, the tax exemption for substantial shareholdings and the new regime for giving tax relief for intangible assets, all of which contribute to the competitiveness of UK companies. Increased innovation and workforce training are both important components in improving productivity. Businesses have therefore also welcomed the large company tax credits for research and development, the additional details on the skills pilot schemes and the targeted support for smaller organisations to reach the IIP standard.