Written question asked by Claire Curtis-Thomas (Labour) on Wednesday, 2 July 2003, in the House of Commons. It was due for an answer on Wednesday, 9 July 2003. It was answered by John Healey (Labour) on Wednesday, 9 July 2003 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, what steps the Government has taken to encourage investment in the stock of physical capital in industry.

Answer: Mrs. Curtis-Thomas: To 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 Healey: This 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; and Regional Development Agencies set up to promote efficiency, investment and competitiveness.

Secondary information

Type: Written question
Reference: 124216; 408 c878W;408 c876W
Session: 2002-03
Subjects: Investment Industry Productivity Trade competitiveness Research and development tax credit
Link: View this Written question on www.publications.parliament.uk