Clause 24
Finance (No. 2) Bill
10:45 am
John Healey (Financial Secretary, HM Treasury; Wentworth, Labour)
I will attempt to be brief on this clause, too. The Labour Government are committed to maintaining a modern, fair and competitive corporation tax system. That is becoming more important in what is increasingly a more flexible and competitive global trading environment. Since 1997, we have therefore attempted in part to promote enterprise by reducing the headline rate of corporation tax from 33 per cent. to 30 per cent., the lowest United Kingdom corporation tax rate since its introduction. Alongside that, we have introduced several more targeted measures, including relief for research and development costs, which we shall debate under future clauses.
The clause will enable corporation tax to be charged for the financial year 2007-08. It sets the main rate for that year at 30 per cent., which is no change from the current rate. I commend the clause to the Committee.