Asked by: Iain McKenzie (Labour - Inverclyde)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what fiscal steps he has taken to encourage manufacturing in the UK since May 2010.
Answered by Baroness Morgan of Cotes
With its long-term economic plan, this Government is committed to strong and sustainable growth that is balanced across the economy. Manufacturing is a vital part of this, and the Government has put in place a wide range of measures to improve the wider business environment and support this sector, including both tax reforms and direct support.
This Government has reduced the main rate of corporation tax to improve the business environment and attract investment: it is currently 21%, down from 28% in 2010, and will fall further to 20% in April 2015. Beyond this, support to manufacturing includes the Government committing £3.2bn to the Regional Growth Fund, over £1.5bn of support to specific sectors through theIndustrial Strategy, £345m to the Advanced Manufacturing Supply Chain Initiative, and over £200m to a Catapult centre on High Value Manufacturing. In the recent Budget the Government announced a package of measures to reduce energy bills for manufacturers and improve their competitiveness.
There is more to do, but the latest GDP figures and May's manufacturing PMI are encouraging.
Asked by: Iain McKenzie (Labour - Inverclyde)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what fiscal measures he has taken to encourage small and medium-sized businesses in the UK since May 2010.
Answered by Baroness Morgan of Cotes
The government is committed to making the UK the best place in Europe to start, finance and grow a business and has introduced a number of fiscal measures since 2010 to encourage small and medium sized businesses.
The government has doubled the Small Business Rate Relief for every year of this Parliament saving businesses occupying small premises over £1.5 billion to date. The government announced additional business rate measures at Autumn Statement 2013, capping business rates increases at 2 per cent in 2014-15, and introducing a special discount of £1,000 for retail premises with rateable values below £50,000 in 2014-15 and 2015-16.
From April 2014 the £2,000 Employment Allowance is supporting small businesses aspiring to hire their first employee or expand their workforce. The government has also increased the payable Research and Development tax credit for loss-making small and medium sized businesses from 11 per cent to 14.5 per cent from April 2014, providing particular support for early-stage companies and start-ups.
Fuel costs are significant for many small businesses so the government has implemented the longest duty freeze for over 20 years. In total, by 2015-16 a small business with a van will have saved £1,300 and a haulier £21,000.