Budget Resolutions and Economic Situation

Part of Amendment of the Law – in the House of Commons at 7:26 pm on 27 March 2007.

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Photo of Geoffrey Robinson Geoffrey Robinson Labour, Coventry North West 7:26, 27 March 2007

May I tell the hon. Gentleman that the one thing to which he drew attention—staying out of the euro, despite many pressures—was a unique achievement by the Government? I can think of one or two Ministers who are in the Chamber who were influential in that vital decision. Let us leave it at that.

I said that the Chancellor is respected throughout the country, and I can assure Opposition Members, much to their disappointment, that we will not let our policies or decisions be affected by short-term fluctuations in opinion polls. Those who look at those short-term fluctuations —[ Interruption. ] Yes, exactly, they will mislead themselves, and indeed, Opposition Members are in danger of doing so at the moment. We will stick, as we have done, with policies committed to long-term stability, which is a remarkable achievement, and to the long-term growth and prosperity of the economy.

I wish to put one more point about the specifics of the Budget to Ministers for consideration. I understand all the reasons why we have taken the step, which again corrects something that we did earlier, of increasing the tax rate for small companies. I am aware of capital allowances, the research and development allowances and the other measures that have been taken, which are potentially of considerable benefit to the small business sector. Of course, as my right hon. Friend the Secretary of State for Trade and Industry clearly said, roughly 3.5 million of the 4 million small companies in the UK are sole traders, so they are not affected by the measure, but there is still a substantial group of companies that are affected. We should not undertake one of those big, complicated bureaucratic reviews, but we should take a clear-headed sharp look at how we spend the money in support of small companies.