Oral Answers to Questions

Chris Skidmore Excerpts

Tuesday 11th December 2012 Commons Chamber

[Mr John Baron (Basildon and Billericay) (Con)]

2. What steps he is taking to support business creation.

[Chris Skidmore (Kingswood) (Con)]

3. What steps he is taking to encourage private sector job creation.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

7. What steps he is taking to support business creation.

--- Later in debate ---

[Mr Osborne]

My hon. Friend is right that the deficit is how much we add to the debt each year. That is why we have to bring the deficit down—it has come down by 25%—but he is also right that we have to have a competitive private sector. We have to have a private sector-led recovery, which is why we have increased the annual investment allowance, for example. He recommends a cut in the small company corporation tax rate. [Interruption.] The shadow Chancellor from a sedentary position said, “That’d be a good idea,” but he was going to put the rate up when we came into office. We have cut the rate to 20% and increased the annual investment allowance.

[Chris Skidmore]

Does the Chancellor agree that increasing the annual investment allowance from £25,000 to £250,000 will make a huge difference to local small businesses and lead to additional and vital job creation in the private sector?

[Mr Osborne]

I think it will help, alongside the reduction in the small company rate. I am pleased that the Federation of Small Businesses said we had listened to the concerns of members, and the chambers of commerce were also supportive. Over the next two years this measure will encourage investment from small and medium-sized businesses, although all businesses that invest will benefit.