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Finance Bill

It is a pleasure to follow the hon. Member for West Suffolk (Mr. Spring) for the first time from the Dispatch Box and to respond to such a good debate: 20 Back Benchers have spoken, including nine who made their maiden speeches. I am not sure whether the Whips on either side have told those Members who made their maiden speeches that a speech on Second Reading is normally an indication of volunteering for service on the Standing Committee. They say that every Member should serve at some time on a Standing Committee that considers a Finance Bill; they also say that the wise ones do so only once. I welcome the Conservative Front Benchers’ recognition of the important role of anti-avoidance legislation. I welcome their decision not to vote against the Bill. I also welcome their intention rightly to subject its provisions to close scrutiny in Committee. I was interested by the remarks of the hon. Member for Runnymede and Weybridge (Mr. Hammond) who claimed in his speech and on his website and the Conservative website that the Bill will put at risk investment into Britain. He said that it could harm British business and deter investment. I must say that I welcome that interest in investment. It is certainly true that, beyond entrenching Britain’s long-term economic stability, probably the greatest imperative for our future prosperity is securing the sustained increases in investment, from both public and private sources, that will drive the improvements in productivity that will ensure that this country and our companies retain and improve their competitiveness in future. That is why, compared with 1997, we are now investing £1 billion more in science, £9 billion more in transport and £27 billion more in education and training. Perhaps we can also look forward to a warmer recognition of the important tax reforms that the Government have put in place to promote private investment: the research and development tax credit; permanent first-year capital allowances; the cut in corporation tax from 33 to 30 per cent. and from 23 to 19 per cent. for small firms; and, of course, the cut in capital gains tax from 40 per cent., where it had been for many years, to 10 per cent. now. We will continue to consider other measures to boost business investment, and to the extent that we can do so with support from the Opposition, so much the better.