§ Mrs. Curtis-ThomasTo ask the Chancellor of the Exchequer what steps the Government have taken to encourage investment in the stock of physical capital in industry. [124216]
§ John HealeyThis Government are committed to encouraging greater levels of investment within UK industry. Investment is a key driver of productivity and is also key to raising competitiveness and long-run living standards.
Since 1997, the Government have introduced a number of macro-and microeconomic reforms aimed at building stability, boosting productivity and producing an environment conducive for investment for the long term, for example:
The R and D tax credit for both small and large businesses;100 per cent. capital allowances for ICT expenditure and enhanced first-year allowances for all plant and machinery for small and medium-sized businesses;Reduced corporation tax rates, including the small business rate of 19 pence, with OECD figures showing that the UK has one of the lowest tax burdens in the EU; andRegional Development Agencies set up to promote efficiency, investment and competitiveness.