Topical question asked in the House of Commons, by David Leslie Taylor (Labour). It was answered on Tuesday, 15 December 2009 on behalf of the Treasury.

Topical Questions

Question: Despite the cheaper pound and rising house prices, stalled industrial output is still holding the economy back. Will the Chancellor tell the House what progress has been made on his plan to diversify the economy away from the financial services sector?

Answer: In the pre-Budget report last week, I set out a number of measures to encourage low-carbon industries and to encourage business generally. It is important that we have a diverse economy. The research and development tax credits and the reduced rate of corporation tax for firms that patent discoveries in this country and then develop them here are part of a range of measures all designed to make sure that we have a more diverse economy in the future. In the 1980s, rather too many firms went under and rather too many sectors were badly damaged: we cannot afford to repeat that mistake.

Secondary information