---

Finance (No. 3) Bill

That is the key issue. This is why the discussion has strayed into public spending. The Exchequer Secretary has said:"““I make four arguments for prioritising this move to reduce corporation tax. First, corporation tax rates are important in themselves in selling the UK. They are an advert for the economy and for the UK as a good place to do business. By reducing our rate we are sending the strongest possible message that Britain is open for business. Secondly, this cut is a necessary step to help to rebalance the economy””," which was the very point made just now by my hon. Friend the Member for North Durham. The Exchequer Secretary added:"““As we take tough measures to scale back the public sector, we must provide the necessary boost to the private sector. Thirdly, the OECD's estimates suggest that corporation tax is an inefficient and growth-damaging tax. Lower corporation tax rates encourage investment, which this country needs to support the recovery. Finally””—" in the Exchequer Secretary's own words—"““far from merely being a tax cut for profitable companies, they will provide the boost to investment that is vital for Britain””.—[Official Report, 12 July 2010; Vol. 513, c. 750.]" We support those four general points. We have no quibble with what the Minister said on those four points.