Small business annual investment allowance

Date of Answer: 03.06.2010

Column References: 510 c560

Member Tabling Question: McKinnell, Catherine

Topic: Regulation

Question: With reference to the Minister’s desire to help small businesses, it has to be accepted that some effort needs to be made to create the right environment for manufacturing businesses. Will he therefore please explain the Government’s plans to remove the annual investment allowance, which helps thousands of manufacturing businesses, hundreds of which are in my constituency?

Answering Department: Department for Business, Innovation and Skills

Member Answering Question: Prisk, Mark

Answer: The hon. Lady is right to point out the importance of manufacturing; it is a crucial part of our economy. Sadly, it became imbalanced when her party was in power, and we need to change that. On the tax measure in question, and the representation that she made, she will understand that we are in the period running up to Budget purdah and need to be careful not to get ahead of what I think the Chancellor’s ambitions will be, but at the CBI dinner he made it very clear that, as regards corporation tax changes, we will not act in any way that impugns manufacturing in any form. The hon. Lady is right to point out the importance of manufacturing; it is a crucial part of our economy. Sadly, it became imbalanced when her party was in power, and we need to change that. On the tax measure in question, and the representation that she made, she will understand that we are in the period running up to Budget purdah and need to be careful not to get ahead of what I think the Chancellor’s ambitions will be, but at the CBI dinner he made it very clear that, as regards corporation tax changes, we will not act in any way that impugns manufacturing in any form.