Oral Answers to Questions

Jim McGovern Excerpts

Wednesday 7th July 2010 Commons Chamber

[The Prime Minister]

My hon. Friend makes an important point, which is that we are not just fighting a war on the ground; there is a propaganda war as well. We have to demonstrate the progress we are making in training up the Afghan army and the Afghan police, and in spreading security and governance across Afghanistan—particularly, in our case, in southern Afghanistan. I can tell my hon. Friend that we will be publishing a monthly update and having quarterly statements in the House to ensure that we keep the British public fully informed and on side as we take difficult decisions in this conflict.

[Jim McGovern (Dundee West) (Lab)]

Q2. In the run-up to the general election, the Conservatives claimed to be the party that would support small businesses, yet in their first Budget they cancelled tax breaks for the computer games industry, which is crucial to my constituency. Can the Prime Minister tell not only me and the House but the hundreds of people in Dundee who are employed in the computer games industry and the students who study at Abertay university exactly why his Chancellor feels that that tax break was poorly targeted?

[The Prime Minister]

We believe that what matters is having low tax rates, and what we did in the Budget—which the House voted on last night—was to cut the small company rate of corporation tax back down to 20p from 22p and set out a path for getting corporation tax down to 24% by the end of this Parliament. That would give us one of the lowest tax rates in the G8, the G20 or anywhere in Europe. That is what we will benefit from, but I note that the Labour party voted against those tax reductions.