Nadhim Zahawi calls on the Chancellor of the Exchequer to make full expensing permanent and abolish the so-called factory tax - the tax paid, in real terms, by businesses on investment in buildings and machinery.
13. What steps his Department is taking to encourage pension schemes to invest in the UK. (900047)
In my speech at Mansion House in July, I announced reforms to boost pensions, increase investment in UK businesses, and improve UK capital market competitiveness. Those reforms could result in over £1,000 a year of additional retirement income and unlock £75 billion-worth of investment in high-growth businesses.
I welcome the proposals that my right hon. Friend the Chancellor made in his Mansion House speech, which will increase investment in the United Kingdom. In his upcoming autumn statement, I implore him to build on his Budget announcement with a policy that was originally advocated for in a paper by the Adam Smith Institute, a think-tank I am proud to be patron of, as is set out in my entry in the Register of Members’ Financial Interests. I implore him to make full expensing permanent and to scrap the hated factory tax.
I have a very small bone to pick with my right hon. Friend, because when I became Chancellor I was hoping to say that I was the first Chancellor who was once an entrepreneur, but he pipped me to the post. However, he is absolutely right to say how important it is to have competitive business investment taxes. I was very proud in the spring Budget to introduce full expensing for three years, which gives us some of the most competitive business taxes in the OECD. Only five other countries do that, and I will of course keep under review any possibility to extend that tax break.