Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what fiscal steps her department is taking to minimise barriers for international firms to invest in the UK.

Restoring sustainable, long-term economic growth remains the number one priority of this government. This is the foundation for the prosperity that families throughout the UK expect, and it is essential to creating the conditions that attract investment across sectors such advanced manufacturing, clean energy, and digital technologies.

The UK continues to champion free trade and global investment. We are supported by over 70 international trade agreements and have more than doubled the government’s budget headroom, strengthening our resilience and capacity to respond to future challenges. Our stable fiscal framework and pro‑investment tax system give international firms the confidence to invest. Consistent with the commitments set out in the 2024 Corporate Tax Roadmap, the government is maintaining the elements of the UK’s corporate tax offer that matter most for new investment:

• a main rate of Corporation Tax at 25% – the lowest in the G7;
• a flexible and competitive regime for intangible assets;
• the Patent Box; and
• one of the most generous and competitive capital allowances regimes in the world.

The UK is also an attractive location for groups to locate their headquarters or holding companies, offering broad exemptions for gains on disposals of substantial shareholdings and a broad exemption for dividends paid to UK companies. There are also limited withholding taxes on outbound payments such as dividends, interest and royalties.

These measures are delivering results. We are set to be the second fastest growing economy in the G7 this year; PWC last year named the UK as the second most attractive country for investment in the world among CEOs, behind only the US and since coming into government we have seen companies from across the globe commit over £325bn worth of private investment into the UK.