Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent comparative assessment he has made of business investment per capita in the (a) UK and (b) Republic of Ireland.

The Chancellor has not made an assessment on this basis. However, capital investment by UK businesses averages 10% of GDP, considerably lower than the current OECD average of 14%.

April 1st will mark one year since the super-deduction – the biggest two year business tax cut on modern British history – took effect. Since taking effect, business investment has increased by 9%.

In his recent Mais lecture on 24th February, the Chancellor set out that the government will focus on capital as one of its priorities, cutting and reforming taxes on business investment to encourage firms to invest in productivity-enhancing assets.

In Spring Statement 2022, the government recognised that the best way to support households in the long run is through encouraging strong and sustainable growth across the UK, by promoting investment and innovation; and then sharing more of the proceeds of growth by reducing the tax burden for working people.