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Finance (No. 2) Bill

I am grateful for that question, but a range of factors make up the business and economic environment that allows small firms to start up and prosper. My hon. Friend mentions the number of new firms in her constituency of Bishop Auckland, but there are now 570,000 more businesses in the British economy than there were in 1997. The business start-up rate is faster than for many years, and that is based on our stable and steadily growing economy, but the operation of the tax system can aid or hinder the formation and growth of small firms. The provisions of clause 26 will introduce a simpler corporation tax structure, and in a modest way will assist the process. All firms will benefit, including those in Bishop Auckland. Of course, we can do more to support business, and my hon. Friend the Member for Bishop Auckland (Helen Goodman) is one of those who constantly urges the Government to do so. In the Budget 2006, we have made clear our desire to join business and its representative organisations in looking at doing more. I look forward to the continuing discussions in that regard. The measures in clause 26 were welcomed by business representatives as a constructive way forward. I urge the Committee to support its standing part of the Bill. Question put, That the clause stand part of the Bill:— The Committee divided: Ayes 304, Noes 137.