James Cartlidge
Main Page: James Cartlidge (Conservative - South Suffolk)Department Debates - View all James Cartlidge's debates with the HM Treasury
Surplus Target and Corporation Tax
James Cartlidge Excerpts(7 years, 11 months ago)
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Mr Osborne
As the hon. Lady knows, we still have to work out the fiscal underpinning of these arrangements, but they allow the Northern Ireland Executive to set any rate that they want. The good news about the reduction in the UK rate is that it applies to businesses throughout Northern Ireland as well, and, to put it, bluntly, makes it cheaper for the Northern Ireland Executive to reduce their corporation tax rate.
James Cartlidge (South Suffolk) (Con)
I welcome the commitment to lower the corporation tax rate, but may I echo the point made by my hon. Friend the Member for North West Hampshire (Kit Malthouse) about the need to look at our corporation tax regime in the round? I recently visited Lavenham Press, a printing company in my constituency, whose representatives pointed out that capital allowances had been cut. Given the importance of manufacturing, may I ask my right hon. Friend at least to keep the issue of capital allowances under review?
Mr Osborne
Of course we keep taxes under review. As I have said, my revealed preference is generally to try to reduce reliefs and reduce headline rates, which I think is the least economically distorting approach, but there are many exceptions to that. One of them has been the investment allowance, which we have increased, and which is particularly targeted at small and medium-sized businesses. It now stands at £200,000 as a permanent annual allowance, which is the highest that it has ever been.