Commons Sense

House of Commons · Ministers' Questions

Inward Investment: Fiscal Steps

Tuesday 3 September 2024 · 6 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 5 Not answered 0

Key points

  • Investment is a key focus for the Government's growth mission, alongside stability and reform.
  • The north-east has potential to grow the economy through sectors including advanced manufacturing.
  • The Government recognize the importance of inward investment in Northern Ireland and its impact on youth employment.

Topics (select to filter)

Questions & Answers

Q1 Uma Kumaran Lab Stratford and Bow
Economy Taxation
Context

The question arises from the need to support economic growth through inward investment. The MP notes that fiscal steps are crucial.

Question

What fiscal steps she is taking with Cabinet colleagues to encourage inward investment?

Answer from Rachel Reeves

Investment is at the heart of this Government's growth mission, alongside stability and reform. With robust fiscal rules and respect for economic institutions, the Government are building the confidence needed to deliver private sector investment. It is vital that the tax system also supports growth, and today I can confirm that the Government will outline a tax road map for business at the Budget to offer the certainty that encourages investment and gives business the confidence to grow, including our commitment to cap corporation tax at 25% for the duration of this Parliament and to retain full expensing.

Answered
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Q2 Chi Onwurah Lab Newcastle upon Tyne Central and West
Economy Science & Technology Business & Trade
Context

The MP notes that the north-east attracted 67 foreign direct investment projects last year, creating over 4,000 jobs. She wants to ensure more global investors are aware of these strengths.

Question

What is she doing with the Mayor of the North East, Kim McGuinness, to ensure that more global investors are aware of the north-east's strengths and that we can attract more inward investment, creating more jobs?

Answer from Rachel Reeves

My hon. Friend makes an important contribution on behalf of her constituents, based on her background of working in science and technology before entering this House. My hon. Friend is absolutely right to say that the north-east has huge potential to grow the economy through sectors including advanced manufacturing, health, technology and our creative industries, and this Government will work with our local mayors, including Kim McGuiness, to develop ambitious, long-term local growth plans that reflect the north-east's strengths.

Partly answered

Not addressed: Details on specific actions or timelines were not provided.

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Q3 Alan Gemmell Lab Central Ayrshire
Scotland Business & Trade
Context

The MP highlights the importance of international investment for the aviation and aerospace sectors, noting that 55% of Scotland's aerospace jobs are based in Prestwick.

Question

Can my right hon. Friend tell me what more the Government will do to ensure continued international investment in these sectors?

Answer from Rachel Reeves

I thank my hon. Friend for his question, and I know that his experience as His Majesty's trade commissioner in India means that he understands the importance of global trade and investment to the UK economy, including the Scottish economy. Last week, I had the opportunity to visit the National Manufacturing Institute Scotland and see at first hand the excellent work that is going on to promote innovation in a whole range of sectors, including aerospace and satellite technology.

Partly answered

Not addressed: Details on specific measures for international investment were not provided.

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Q4 Uma Kumaran Lab Stratford and Bow
Economy
Context

The MP notes the importance of supporting London to continue its success on the global stage, highlighting the city's role in inward investment.

Question

How will the Government support our capital city to continue its success on the global stage, and ensure that London can help encourage onward investment and support wider economic growth around the country?

Answer from Rachel Reeves

I thank my hon. Friend for her question and welcome her to her place. The regeneration of Stratford after the Olympic games is truly phenomenal, and I know that she will be a strong voice for her constituency and help to deliver the growth mission, which is the No. 1 priority of this new Government.

Partly answered

Not addressed: Specific actions were not provided.

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Q5 Tim Farron Lib Dem Westmorland and Lonsdale
Agriculture & Rural Affairs
Context

The MP highlights the need to reward farmers for food production and environmental protection, noting underspending by £100 million last year.

Question

Will the Chancellor confirm that she will not bake in that underspend, which was the fault of the last Conservative Government, and commit to ringfencing what is already invested in farming?

Answer from Rachel Reeves

The rural economy plays an incredibly important role in our economic prosperity as a country, and boosting food security and biodiversity is obviously incredibly important to a whole range of this Government's objectives. I will ensure that the Secretary of State for Environment, Food and Rural Affairs hears loud and clear the message from the hon. Member, and I am sure he will include it as part of his submission to the spending review on 30 October.

Partly answered

Not addressed: Commitment to specific funding was not provided.

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Q6 Jim Shannon DUP Strangford
Employment Northern Ireland
Context

Youth unemployment rate in Northern Ireland was 5% as of the first quarter of 2024, compared to 3.8% the previous month.

Question

I thank the Chancellor for that and I welcome her to her place. It is important to encourage inward investment. As of the first quarter of 2024, the youth unemployment rate in Northern Ireland was 5%, compared with 3.8% the month before. What discussions has the Chancellor had with the Northern Ireland Assembly Minister in charge to ensure that youth unemployment in Northern Ireland will be reduced to an acceptable figure, which should be zero?

Answer from Rachel Reeves

A huge amount of inward investment goes to Northern Ireland, and it is important that young people are able to take advantage of those opportunities in financial services, advanced manufacturing, shipbuilding or other sectors. It is a travesty that one in five young people today are not in employment, education or training. The Secretary of State for Work and Pensions will be bringing forward a White Paper to ensure everyone who can work does work and is given the support to succeed.

Partly answered

Not addressed: The specific discussions with the Northern Ireland Assembly Minister were not addressed.

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