UK: International Competitiveness

Debate between Baroness Valentine and Baroness Wilcox

Wednesday 23rd June 2010 Lords Chamber

[Baroness Valentine]

To ask Her Majesty’s Government what steps they intend to take to protect and strengthen the United Kingdom’s international competitiveness.

[The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Baroness Wilcox)]

My Lords, we are committed to maintaining and improving our international competitiveness by restoring macroeconomic stability, helping provide infrastructure, science and research and better linking higher and further education into the economy. We will ensure that regulation is proportionate and will work towards having the most competitive corporate tax regime in the G20.

[Baroness Valentine]

I thank the Minister for her reply and welcome the Government’s recognition that reducing the deficit depends fundamentally on continued economic growth. In yesterday’s Budget, the independent Office for Budgetary Responsibility determined the revenue maximising rate for capital gains tax. Given that the top rate of income tax of 50 per cent is a deterrent to attracting talented individuals and investment to the UK, will the Minister support asking the OBR to investigate what top rate of income tax would maximise Exchequer returns?