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Finance (No. 2) Bill

Of course the hon. Gentleman recognises that we are a trading nation and that our ability to trade will significantly contribute to our future. If he had listened to the last few chapters—or rather, paragraphs—of my contribution, he would know that I have set out clearly which sectors we in government have identified as providing the growth in our trade, and I had not understood that there was any difference across the House on the sectors where growth and improved productivity are possible and ought to be encouraged. Indeed, I have shared television studios with the shadow Chancellor of the Exchequer when he has made the very same point. Our duty is to support such growth for years to come, and the Bill delivers on that promise, by targeting support to the cutting-edge sectors of our economy, to the creative industries—to our athletes, indeed—and to business. It is both a flexible and a tailored response. It introduces and builds on generous film tax relief for the production of culturally British films, with an eye on the benefits that those films bring, by replacing the existing relief and providing a new foundation to ensure the proper taxation of film production companies in general. We have extended the research and development tax credit, by which £1.8 billion of support has been already claimed by companies that undertake research and development, and to support our high-tech cutting-edge industries, clause 29 will expand their qualifying costs. To bolster business, the Bill will introduce a temporary increase in the amount of first-year allowances for small enterprises, thus enhancing support for new investors and increasing first-year capital allowance from 40 to 50 per cent.