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Budget Resolutions and Economic Situation

The Chancellor says that every year, but the record, as the hon. Gentleman has conceded, is dreadful. Business investment in the fourth quarter of last year was 9.1 per cent. of GDP—the lowest figure recorded in this country since records began in 1965. Our business investment record is very poor, and, as hon. Members have said, people are being deterred from investing in this country by high levels of complicated corporate taxation, by rising levels of regulation and by falling or dull demand in this country. We must address why this country is not producing the necessary level of business investment. Productivity is another area in which our performance has been dreadful.