Justin Tomlinson
Main Page: Justin Tomlinson (Conservative - North Swindon)(13 years, 7 months ago)
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Robert Neill
I understand that, Mr Davies, but there are criticisms of the previous Government’s approach that I intend to make, and it is interesting that it is coalition Members who have attended to support the interests of businesses.
The Government, recognising the difficulties that we inherited when we came to power, have done much to support business. In the June Budget, we announced that we would reduce both the main rate and the small profits rate for corporation tax, which is another major outgoing; increase the threshold for employer national insurance contributions; and reduce employer national insurance contributions for new businesses in targeted areas.
Justin Tomlinson (North Swindon) (Con)
On that point, does the Minister agree with me that if we used the national insurance holiday money to allow flexibility in the business rates for start-ups, we might see new businesses start up and new job creation?
Robert Neill
That is an interesting suggestion that I will take away. As I will say later in my speech, we intend to give a great deal of thought to finding ways forward.
We have also increased the enterprise finance guarantee, created a new growth capital fund and set up a regional growth fund. All those measures taken in the Budget set out the broader picture. We have also taken important action on business rates. In the Budget, we announced our intention to waive £175 million of backdated business rates demanded of businesses, including some, although not exclusively, in ports. Thanks to that action, many companies across the country, particularly small and medium-sized enterprises, can now move forward confidently, unburdened by those unexpected debts. We will introduce the necessary legislation to achieve that in the localism Bill.
We also took action in the Budget to help small businesses through the business rates system. We are well aware that small businesses provide nearly 60% of our jobs and half of our GDP. We recognised the need to inject new life into that part of the private sector, so that enterprise can drive recovery. We therefore doubled the level of small business rate relief for one year—a measure that is currently saving approximately 500,000 businesses £390 million in taxes. More than a third of a million ratepayers will pay no rates at all for that year.