Finance Bill

I beg to move, That the Bill be now read the Third time. It is a pleasure to begin by thanking all those who have contributed to the consideration of the Bill in the Committee of the whole House, in the Public Bill Committee and over the past couple of days on Report. We have missed my right hon. Friend the Paymaster General—I believe she has been missed on all sides. This would have been her 13th Finance Bill, and I know that the whole House would want to join in paying a tribute to her. The major changes in the corporate and personal tax systems in this year’s Budget have been possible because of the unprecedented stability and growth that the Government have delivered over the past decade—record levels of employment, low inflation, and the second highest GDP in the G7 per head, as opposed to the lowest when we came to office. This is the longest expansion among the entire Organisation for Economic Co-operation and Development and the longest on record for any G7 country, so it is no surprise that the International Monetary Fund praised the UK in February for our"““decade long record of strong and steady macroeconomic performance””." The Bill continues that progress. It enhances competitiveness, supports investment and innovation, increases fairness, including safeguarding the revenues to deliver world class public services, and addresses the growing challenge of climate change. Clause 2 reduces the main rate of corporation tax from 2008 to 28 per cent., a lower rate than any of our major competitors. Clause 3 phases in necessary increases to the small companies rate, with the proceeds recycled to businesses that invest. To support investment, clause 36 extends the enhanced 50 per cent. rate of first year capital allowances for small businesses for another year, and next year a new annual investment allowance will provide 100 per cent. first year allowances for the first £50,000 worth of expenditure on most plant and machinery—a big cash flow benefit to companies that reinvest their profits, so offsetting the small companies rate increase for investing small companies.