Finance (No. 2) Bill

Debate between James Morris and Danny Alexander

Tuesday 1st April 2014 Commons Chamber

[Danny Alexander]

I could not agree more with my hon. Friend, and I shall come to those points later. He is absolutely right to say that measures in the Bill will ensure a degree of fairness.

Let me begin by describing the measures that will aid growth and investment. Hon. Members will be well aware that the economic recovery is taking hold. Jobs are up, the deficit is down, the economy is growing and, as we have seen from this morning’s figures, productivity is improving. This growth has come about because of the nous and the hard work of businesses and individuals in every part of the United Kingdom. We have done our best, over our four years in office, to create the right tax environment to support their work by reducing the level of corporation tax, bringing rates for large and small firms down to 20%, and at the same time offering generous reliefs for R and D-intensive firms and the creative sector. Our reliefs for the film, high-end television and video games sectors are among the most generous in the world, and the critical and commercial success this year of movies such as “Gravity” shows that these reliefs really have taken off.

We know that all the changes we have made across our tax system have been responsible for companies locating their operations here, and for companies expanding their operations here, but we also know that there is still a long way to go. The Bill tackles some of the challenges facing our business community and our economy. We recognise that British businesses are still not investing enough, and that it is only by increasing business investment and productivity that we can embed a long-term recovery that benefits everyone. Let me put that point into perspective. If businesses had increased investment by just 10% in 2012, the level of GDP in this country would be £12 billion higher today. That is why we need to use our tax system to encourage further investment now. The Bill will therefore raise the annual investment allowance to £500,000, with effect from this month.

[James Morris (Halesowen and Rowley Regis) (Con)]

Will not the doubling of the investment allowance have a specific benefit for manufacturing companies outside London and the south-east, particularly in areas such as the west midlands and the black country, where manufacturers’ order books are full and those companies are seeking to invest in new plant and machinery?

[Danny Alexander]

As usual, my hon. Friend is absolutely right. In particular, the measure will help small and medium-sized manufacturers outside London; they are the backbone of our economy.

Oral Answers to Questions

Debate between James Morris and Danny Alexander

Tuesday 12th October 2010 Commons Chamber

[Danny Alexander]

I fear that the hon. Gentleman will have to wait until a week tomorrow for the spending review announcement to hear details of that sort, but I can tell him that the purpose of the regional growth fund is precisely to ensure that areas hit hardest by public spending cuts or areas most dependent on the public sector have an opportunity to put forward proposals for measures that would support their economic growth. The regional growth fund has been established to meet those proposals.

[James Morris (Halesowen and Rowley Regis) (Con)]

This builds on what the Chief Secretary has just said. Does he agree that what we need with the regional growth fund is a much more focused regional policy, rather than the waste that came from the previous Government and their one-size-fits-all regional policy?

[Danny Alexander]

I would agree with that, although I am not going to go over the litany of spending by regional development agencies. Having a regional growth fund that is able to respond to bids from communities, along with a much more devolved set of arrangements, through local enterprise partnerships, which require local authorities and local businesses to work together on what is best for their areas, is a much more dynamic approach, and it is likely better to meet the needs of those areas.