Adrian Bailey
Main Page: Adrian Bailey (Labour (Co-op) - West Bromwich West)Department Debates - View all Adrian Bailey's debates with the HM Treasury
(12 years ago)
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Danny Alexander
I was indeed shocked to hear the shadow Chief Secretary say on “Newsnight” that she opposed the cut in corporation tax. I would have thought that the Labour party would welcome such a measure, as it is designed to increase investment in British businesses and support economic growth—that is something that Labour Members say they want to see. The constituency firm to which my right hon. Friend refers could benefit from the national loan guarantee scheme and the credit easing scheme that the Chancellor announced at the Budget, and it could participate in the advanced manufacturing supply chain initiative, which the Department for Business, Innovation and Skills has announced, whereby £125 million is being spent to help manufacturers improve their performance.
Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)
Manufacturing businesses in the black country are adamant that what will help them improve their investment is an increase in capital allowances, rather than cuts and cuts in corporation tax. Why do the Government not do that?
Danny Alexander
The hon. Gentleman will know that we have put in place enhanced capital allowances in a number of enterprise zones around the country, particularly to focus investment in plant and equipment in such areas. We announced in the autumn statement improvements to the short-life capital allowances regime, which had been a major request by manufacturing and, in particular, the engineering sector. I would have thought that he would have welcomed those changes.