Oral Answers to Questions

Debate between George Osborne and Jack Lopresti

Tuesday 1st December 2015 Commons Chamber

[The First Secretary of State and Chancellor of the Exchequer (Mr George Osborne)]

This Government know there cannot be a successful economy without support for business and enterprise. That is why we are cutting corporation tax, increasing the employment allowance and setting a permanently higher investment allowance. It is also why last week we increased our support for industrial policy, including a boost for science, and announced that we had doubled small business rate relief again next year, helping 600,000 small businesses.

[Jack Lopresti]

How will my right hon. Friend help small businesses compete with the de facto subsidy that businesses with complex overseas tax structures get, which result in their paying no, or very low, tax in the UK, particularly given that Small Business Saturday is coming up this weekend?

[Mr Osborne]

Small Business Saturday is an incredibly important initiative that everyone in this House should, and I am sure will, support on Saturday. My hon. Friend makes a good point about the international tax rules. The good news is that they have started to change. We have an agreement in the OECD, and Britain is among the countries implementing those changes first. The best example of that is the diverted profits tax, which is already raising revenue and tackling the big multinationals that do not pay their fair share of tax in the UK. At the same time we are cutting taxes for small businesses, for example by increasing the employment allowance.