Orders of the Day — Budget Resolutions and Economic Situation

Part of the debate – in the House of Commons at 9:43 pm on 7th July 1997.

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Photo of Alistair Darling Alistair Darling The Chief Secretary to the Treasury 9:43 pm, 7th July 1997

In a minute, by all means. The shadow Chancellor has not been present all day, but I shall give way to him nevertheless.

The House must bear in mind our central proposal to reduce corporation tax from 33 to 31 per cent., and corporation tax for small companies from 23 to 21 per cent. We have not heard a word about that from Opposition Members, but the fact is that we have reduced corporation tax, which will improve company performance. We have also reduced a distortion in the tax system, so that the system is neutral in regard to decisions on investment and distribution of profits. Opposition Members must ask themselves whether the Tories would reinstate the tax credit system if they were ever returned to power.