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UK Manufacturing

I am delighted to have been able to give the Minister the opportunity to make that explanation. I am sure we all wish the initiative well, although we obviously need to make sure that it delivers what it promises. I am sure that all hon. Members would agree about the principle that it is trying to achieve. We must deal with some other external problems, one of which, particularly at a time of recession, is the threat of a resurgent force of protectionism. As the Minister rightly said, we are facing one of the worst recessions in living memory, and it has hit manufacturing and construction particularly badly. There is danger at this point in the economic cycle, because there are always temptations for the voices of protectionism in countries all round the world to try to re-raise barriers, either tariff or non-tariff. Clearly, that would affect the UK's ability to export. These days, manufacturing is overwhelmingly a global industry and a global business in many sectors. Protectionism is an arrow aimed at the heart of our manufacturing sector if we cannot fend off those siren voices and ensure that the forces of protectionism are held at bay. Given that scenario, why are other countries doing better than us in maintaining their manufacturing sectors and making them prosperous? What should we be doing? My party has come up with a series of ideas, and I propose to summarise them, but I shall not go on for too long because I am conscious that other Members want to contribute. First and most importantly, we need a simpler tax regime, and lower taxes wherever possible. Half of one of our tax ideas was mentioned by the hon. Member for Wolverhampton, South-West (Rob Marris), who spoke about our plans for capital allowances. He neglected to mention what we would do with the money; I am sure that that was merely an unintentional oversight, and I am happy to help him out. The aim, of course, is to reduce corporation tax and the cost of employing staff, particularly for smaller companies. Our ideas on that, which are already a matter of public record, are to cut corporation tax and payroll taxes for small firms, to defer small firms' VAT bills, to introduce measures such as small business rate relief, and to make the latter mandatory. Those ideas are all simple and straightforward, and will help small firms in many sectors, particularly manufacturing, to prosper. They make life simpler, and they mean that firms do not have to check with their accountants before making an investment decision. The measures allow firms to focus on customers, rather than on tax implications, and firms will therefore be much more likely to remain competitive.