Adrian Bailey
Main Page: Adrian Bailey (Labour (Co-op) - West Bromwich West)Department Debates - View all Adrian Bailey's debates with the HM Treasury
(7 years ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mel Stride
My hon. Friend is entirely right. It is important to remember that the burden of corporation tax does not just fall on shareholders. If we were to follow Labour’s policy of increasing corporation tax, we would see less investment, lower growth, lower productivity and, as the Institute for Fiscal Studies has said, lower wages and indeed higher prices.
Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)
Earlier, the Chancellor acknowledged that productivity is the key to economic growth and eliminating our public sector deficit. When manufacturing businesses invest, they often lose any benefits of corporation tax reduction because of higher business rates. That acts as a disincentive to invest and increase output and productivity. Why does he not cut business rates instead?
Mel Stride
This Government have done a great deal in terms of providing business rate reliefs, which were announced in previous Budgets and are, I think, well known to the House. There will be more to come on that in the Finance Bill.