Economy: Private Capital Investment

Baroness Wheatcroft Excerpts

Tuesday 20th December 2011 Lords Chamber

[Lord Sassoon]

My Lords, the best measure of the expected effects of the fiscal measures that I outlined in my first Answer is what business organisations have had to say. For example, the EEF, the engineering employers organisation, has said that the R&D tax credit,

“will send a powerful signal that government intends to make the UK the number one choice for R&D investment and is another step on the road to making the UK the most competitive tax system in the G20”.

I could give the noble Lord similar quotes from the CBI and others.

[Baroness Wheatcroft]

My Lords, large companies are sitting on almost unprecedented amounts of cash rather than investing it. Would the Minister consider means of encouraging those companies to invest in smaller companies and nurture them?

[Lord Sassoon]

My Lords, we are always open to new and imaginative suggestions. Large companies have been talking to us positively about how to develop the supply chain and encourage their smaller suppliers.