Department for Business, Innovation and Skills (Performance)

Ian Murray Excerpts

Wednesday 2nd February 2011 Commons Chamber

[Simon Kirby]

My hon. Friend is, as usual, correct. We inherited a very big mess indeed.

Coalition Ministers are driving forward a programme with one purpose—creating jobs. There is talk about what is happening. A raft of measures have been introduced, and those are designed to support economic recovery, boost business and help the private sector to create jobs. Corporation tax is falling for both small and large firms. The previous Government’s planned increase in employer national insurance contributions has been stopped. National insurance contribution discounts are being offered to encourage new start-ups to take on employees. Small-business rate relief has been doubled for a year, and the Government are getting to grips with the red tape that strangles so many of our small firms.

Let me be clear on this point—

[Ian Murray (Edinburgh South) (Lab)]

Will the hon. Gentleman give way?

[Simon Kirby]

I will not.

Business needs to be liberated, not submerged in legislation, not taxed out of existence, not immobilised by red tape. We must release the shackles and set business free.

Brand UK is strong, and it is important that we talk Britain up, not down. We must dispel any perception that the UK is a burdensome place to do business. We need to be aware of the huge competition from Asia. The Prime Minister, the Foreign Office, the Treasury and BIS have all given the highest priority to the business and skills agenda.

The coalition Government are ensuring that entrepreneurs and business owners are able to access the information and advice that they need. The Business Department is undertaking a number of reforms to Government-funded business support. The Work programme will provide personalised support for those with the greatest barriers to employment. The new enterprise allowance will help people to make the jump from unemployment to self-employment. Investment will ensure that workers have the skills that they need in a modern labour market. Young unemployed people will get much more help to access extended work experience opportunities.

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[Ian Murray]

The hon. Lady, like many of her coalition colleagues, has mentioned the cut in corporation tax as a massive driver of economic growth. Does she agree that corporation tax is paid only on profits and that many small businesses, particularly those in the service and tourism sector in my constituency that write to me, are more concerned about their profits because they have either no customers or fewer customers as a result of the massive VAT hike?

[Lorely Burt]

The Government have been particularly generous to small businesses for the coming year. The hon. Gentleman is right that no one wanted to increase VAT, but unfortunately the alternatives were even less palatable.