§ Mr. Simon ThomasTo ask the Secretary of State for Trade and Industry what initiatives her Department has in place to discourage UK companies and businesses from locating facilities and services overseas. [115048]
§ Nigel GriffithsWe believe that the most effective way to discourage firms from moving abroad is to create the best environment for business success in the UK.
We assist firms in a variety of ways.
We provide practical advice and support to enable every company to be the best it can be. For example the Manufacturing Advisory Service (MAS), launched last year, provides expert advice and consultancy to help companies drive up their value added. On average companies who have participated in MAS in-depth consultancy projects have seen added value of nearly £90,000 per year.
We support firms in the research and development activities that will keep them ahead of the competition. For example, an R&D tax credit for large and middle-sized companies was introduced this year to complement the tax credit for small and medium-sized companies introduced in budget 2000. In 2001–02, the first year for which figures are available, somewhere in the region of 3,000 small and medium-sized companies made claims under the tax credit scheme.
Each year we invest around £1 billion in support for the businesses that create Britain's wealth. We support the investment work of the regional development agencies for example through regional selective assistance through which we offer selective grants to firms investing in the assisted areas and creating or safeguarding jobs. In England in 2002–03, £934 million of business investment was secured as a result of 192 RSA grants totalling £108 million. This is expected to create over 10,000 new jobs and safeguard a further 9,000. Financial assistance to companies in Wales is a devolved matter for the National Assembly for Wales. Data on financial assistance given under the Industrial Development Act 1982, including regional selective assistance, is contained in the Annual Report to Parliament for 2002–03 which was laid on 26 June.