Businesses and the Regions

I do not think that the hon. Gentleman can gainsay the quotation of his own leader:"““many of the regional development agencies, I think that has been a complete waste and that should go.””" It is impossible to deny that that is a threat to the RDAs. The quotes stand, and if the hon. Gentleman thinks that the policy is in doubt, perhaps he should talk to his party leader—perhaps he has not been told. We appear to be hearing one thing from the hon. Gentleman and another from his party leader and his local government spokesman. We will continue to help businesses through the current economic difficulties with national, regional and local action. Local authorities have an important role to play as a customer, as with national Government, and through the valuable economic focus that many have. Business taxation has been mentioned in our debate about the best way in which to help business. The rate of corporation tax and the small business rate are lower than those that we inherited. It is important for business to know that the Conservative party proposes to reduce reliefs on investment in plant and machinery as well as to abolish the £50,000 annual investment allowance. That would have a direct impact on precisely the sort of investment decisions that businesses need to make during the downturn. It has been fairly said that, in the wake of the financial crisis, perhaps the country should rely less on financial services and do more to support manufacturing. However, abolishing or reducing the reliefs would hit precisely the sort of investment that the country needs to boost manufacturing. Given the part of the country that I represent, I believe that manufacturing is important and valuable to our economy. There is no doubt that it is a difficult time for our businesses. We cannot insulate business or our country from the effects of a global downturn, prompted by a banking and financial crisis unprecedented in recent decades. However, we can say to businesses and their employees that we stand with them. Through the steps that we have taken internationally, nationally and regionally and locally, we will continue to stand with business to help it through. On the other side of the difficult economic period, we will work with business to ensure that the energy and creativity of British business, which is renowned throughout the world, can continue contributing to our country in future.