Philip Hollobone
Main Page: Philip Hollobone (Conservative - Kettering)Department Debates - View all Philip Hollobone's debates with the Cabinet Office
(10 years, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Philip Hollobone (Kettering) (Con)
1. What assessment he has made of the effects on the economy in Wales of fiscal measures taken by the Chancellor of the Exchequer since May 2010.
The Secretary of State for Wales (Mr David Jones)
We have announced significant measures to boost growth and support hard-working families. We have cut corporation tax, abolished national insurance contributions for the under-21s and by next April 155,000 people in Wales will have been taken out of income tax altogether.
Mr Hollobone
Given that the Chancellor’s decision to cut Britain’s corporation tax rate to the lowest in the G7 is one of the major reasons for Britain’s economic recovery, will my right hon. Friend reject the advice from the shadow Secretary of State that
“reducing headline corporation tax rates does not work”?
Mr Jones
My hon. Friend is entirely right. Government analyses have shown that high corporate taxes have a negative impact on investment, jobs and growth, and that is why we are reducing the rate to 20% from next April, the joint lowest rate in the G20. The hon. Member for Pontypridd (Owen Smith) would appear to be at odds with the shadow Chancellor, who has committed himself to low rates of corporate taxation.