Economy: Business Investment
Debate between Viscount Younger of Leckie and Baroness Williams of Trafford
Baroness Williams of Trafford
To ask Her Majesty’s Government what are the latest figures they have for the business investment component of the total gross fixed capital formation (GFCF); and what plans they have to increase business investment in the future.
The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Viscount Younger of Leckie) (Con)
Through industrial strategy and our structural reforms, we are setting the long-term direction needed to give businesses the confidence to invest, export and grow. Business investment was £123 billion in 2013, accounting for more than half of overall investment. The OBR forecasts that it will grow by 8% in 2014. At Budget, we announced further funding for innovation, including £42 million for the Alan Turing Institute and £74 million on cell therapy and graphene centres.
Baroness Williams of Trafford (Con)
I thank my noble friend for his response. Can he pinpoint the cause of the increase in investor confidence?
Viscount Younger of Leckie
My Lords, the economy is growing, and unemployment and inflation are down. This is supported by an improving outlook in our export markets. We are cutting corporation tax to 21% this April, and to 20% in April 2015. At Budget, the Chancellor announced measures to reduce business energy costs and doubled our export finance scheme to £3 billion. These and other reforms are improving the business environment and providing long-term certainty for businesses, investors and employees.