Finance (No. 3) Bill

Debate between Leo Docherty and Alan Mak

2nd reading: House of Commons & Programme motion: House of Commons
Monday 12th November 2018 Commons Chamber

[Alan Mak]

I thank the hon. Lady for her intervention. I actually said that it was despite the pressures on our public finances, rather than our public services. We have to get the balance right between cutting taxes for our hard-working taxpayers and investing in our public services. She will know that the Government have announced an increase of £20 billion a year for our NHS—a step that I welcome—but we can only invest that money in our NHS and our public services if we are creating the wealth in the first place. It is the measures in the Budget, including those that cut corporation tax, that will allow us to generate that wealth. It is the measures we have implemented since 2010 that allow us to cut corporation tax.

[Leo Docherty]

Does my hon. Friend agree that the slashing by one third of business rates for small businesses, which are the backbone of our economy, is further good news for business and is to be welcomed?

[Alan Mak]

I welcome my hon. Friend’s intervention. He is absolutely right that small businesses in his Aldershot constituency and in my constituency are the backbone of our economy. We want more of those small businesses. That is why we had a record number of start-ups in 2017, which I very much welcome.

The changes to corporation tax in the Budget will increase the take-up of entrepreneurship, increase entrepreneurs’ ability to start a business and ensure that the marginal rate on them is much lower. We will have the lowest rate of corporation tax in the G20, and we will maintain that ultra-competitive edge as we leave the European Union. The OECD’s evidence suggests that the more we cut corporation tax, the higher the rate of revenue we get for our economy. This is a welcome step that will turbo-charge our economy as we leave the European Union.

Finally, Havant is known for its engineering and manufacturing prowess. Manufacturers such as Dunham-Bush, Lewmar and Kenwood export from Havant to countries all around the world. The reforms to the capital allowance rate and the increase in the annual investment allowance will allow them to buy the machinery, plants and technology they need to expand and grow. I welcome the Bill, because this Budget helps taxpayers to keep more of the money they earn, it helps our businesses to grow and it prepares our country to seize the opportunities of the new technologies of the future.

Oral Answers to Questions

Debate between Leo Docherty and Alan Mak

Thursday 1st November 2018 Commons Chamber

[Leo Docherty (Aldershot) (Con)]

9. What recent assessment he has made of the contribution of the digital sector to the UK economy.

[Alan Mak (Havant) (Con)]

11. What recent assessment he has made of the contribution of the digital sector to the UK economy.

[The Minister for Digital and the Creative Industries (Margot James)]

The UK’s digital sector is a global powerhouse, and the most recent official statistics show that the sector has contributed over £116 billion to the UK economy and is growing faster than the average for the rest of the economy by two and a half times. From 2015 to 2016, the digital sector’s contribution increased by 5.8%.