§ Mr. Stephen O'BrienTo ask the Secretary of State for Trade and Industry what assessment she has made of the impact that falling business investment has on economic growth. [143430]
§ Ms HewittBusiness investment per worker has increased over the last decade in the UK, although it has been subject to a cyclical decline since 2001, in common with our major G7 competitors. Investment drives long run growth, and the Government are committed to ensuring that the UK provides a business environment where investment can flourish. That is why the Government have made major reforms to the macro-economic framework, which have helped to deliver low and stable inflation and to avoid large, destabilising fluctuations in output. Economic stability helps businesses plans for the long-term, giving them the confidence to invest. The Government have also reformed the corporate tax regime to give powerful incentives to invest, improved institutional investment arrangements through the Higgs and Myners reviews, and removed the regulatory barriers to investment in the planning system.