HC Deb 18 December 2003 vol 415 cc1049-50W
Mr. Stephen O'Brien

To ask the Secretary of State for Trade and Industry what measures are contained in the pre-Budget report to encourage investment in the(a) manufacturing and (b) service sector. [143424]

Ms Hewitt

The pre-Budget report contained a number of measures and announcements that will encourage investment across the manufacturing and service sectorsDoubling the amount of investment qualifying for the 40 per cent. plant and machinery first year allowances and a £400 million cash flow boost to smaller businesses over the next three years. Resulting from the increase in Company Law thresholds for small and medium-sized businesses in line with the new EU maxima; A new, clearer and more accessible R&D tax credit definition and extension of the scope of qualifying costs, to further promote the development of science and innovation; Reform of the way public sector engages with suppliers to provide greater clarity and certainty. Alan Wood of Siemens will be reviewing how we can improve the ability of UK firms to compete for public procurement contracts in the EU; Reforms to reduce the regulatory burden on enterprise; An extension of Employer Training Pilots for a third year to cover over a third of England; Measures to support fast growing innovative firms by reducing barriers to raising finance for small business, including a pathfinder round of Enterprise Capital Funds and proposed enhancements to Venture Capital Trusts and the Enterprise Investment Scheme; Launching an independent review of the Small Firms Loan Guarantee Scheme, to ensure its effectiveness; Measures to support regional growth, including details of the Local Authority Business Growth Incentives scheme, which will boost the role of local authorities in business growth, and, in Enterprise Areas, a Business Premises Renovation Allowance; Measures to promote a step change in the UK's enterprise culture, including supporting a national campaign by Enterprise Insight; Improvements to the VAT flat-rate scheme, including new lower rates, to ensure more businesses can benefit fully from compliance savings.

Mr. Stephen O'Brien

To ask the Secretary of State for Trade and Industry what measures are contained in the pre-Budget report to encourage private sector investment. [143437]

Ms Hewitt

[holding answer 11 December 2003]The pre-Budget report contained a number of measures that will encourage private sector investment includingReforms to reduce the regulatory burden on enterprise; Measures to overcome barriers to raising finance for small business, including a pathfinder round of Enterprise Capital Funds and proposed enhancements to Venture Capital Trusts and the Enterprise Investment Scheme; A new, clearer and more accessible R&D tax credit definition and extension of the scope of qualifying costs, to further promote the development of science and innovation; An extension of Employer Training Pilots for a third year to cover over a third of England.

In addition pre-Budget report announced: Launching an independent review of the Small Firms Loan Guarantee, to ensure its effectiveness; Consulting on the most appropriate structure for a tax transparent property investment trust, as recommended in the interim report of the Barker Review.