INVESTMENT

Mr Deputy Speaker, we’re also going to get Britain investing.

Britain has under-invested for decades.

We’re the first government to have committed to long term and rising capital budgets – and this autumn I will set out the detailed plans for the projects that will be supported for the rest of the decade.

We’ve been reminded again this week of the benefits high speed rail will bring to the north of our country and I’m determined it goes further north faster.

Today I have approved a £270 million guarantee for the Mersey Gateway Bridge thanks to the hard work of my HF for Weaver Vale.

Tomorrow we introduce legislation to give new tax and borrowing powers to the Welsh Government to fund their infrastructure needs, and they can start now on work to improve the M4 in South Wales.

Because of the exceptionally poor weather this winter, I am making an additional £140 million available, on top of that already provided, for immediate repairs and maintenance to damaged flood defences across Britain.

Our roads too have taken a battering.

My HF for Northampton North has been a persistent campaigner for resources to repair the pot-holes in his constituency and across the country.

His persistence has paid off and I’m making £200 million available which local authorities can bid for. I trust Northampton will be making an application.

Modern infrastructure is part of a successful economy.

So too is a modern industrial strategy.

If Britain isn’t leading the world in science and technology and engineering, then we are condemning our country to fall behind.

So we will establish new centres for doctoral training, for Cell Therapy and for Graphene – a great British discovery that we should break the habit of a lifetime with and commercially develop in Britain.

To make sure we give young people the skills they need to get good jobs in this modern world, we’ve doubled the number of apprenticeships and I will extend the grants for smaller businesses to support over 100,000 more.

And we’ll now develop new degree level apprenticeships too.

Mr Deputy Speaker, in my maiden speech here in this House I spoke of Alan Turing, the codebreaker who lived in my constituency, who did more than almost any other single person to win the war, and who was persecuted for his sexuality by the country he helped save.

I am delighted that he has finally received a posthumous Royal Pardon.

Now, in his honour, we will found the Alan Turning Institute to ensure Britain leads the way again in the use of big data and algorithm research.

I am determined that our country is going to out-compete, out-smart and out-do the rest of the world.

BUSINESS TAX

Government investment is part of the story – but we need business investment too.

When we came to office, Britain had one of the least competitive business tax regimes in Europe.

Now we have the most competitive.

Thanks to the Office of Tax Simplification we have already cut burdens on administration – and I am grateful to Michael Jack, John Whiting and their team for their hard work.

Today we accept their recommendation to move the collection of Class 2 NICs into self-assessment, abolishing for 5 million people this wholly unnecessary bureaucracy.

And we’ve cut business tax rates.

Corporation tax was 28% when we came to office.

In just two weeks corporation tax will be down to 21%, high street stores will get £1,000 off their rates, and every business in the country will get the Employment Allowance – a £2,000 cash-back on jobs.

Next year, corporation tax will reach 20% and we take under 21s out of the jobs tax altogether.

Businesses keeping more of their money to create jobs and invest in the future.

Today I want to go further.

Many of the enterprise zones we created are now flourishing – so the business rates discounts and enhanced capital allowances will be extended for another three years.

And I can confirm that with the Northern Ireland Executive we’ll establish the first enterprise zone there near Coleraine.

I’m raising the rate of the R&D tax credit for loss-making small businesses from 11% to 14.5%.

Two years ago, I launched the Seed Enterprise Investment Scheme to help finance start-ups.

It’s been a great success and I’m making it permanent.

We’re backing investment into social enterprises with a Social Investment Tax Relief at a rate of 30%.

And we’re supporting our creative industries too. The European Commission has today approved the extension of our film tax credit – and I will apply the same successful approach to theatre, especially regional theatre.

From this September there will be a 20% tax relief for qualifying productions, and 25% for regional touring.

And we’re expanding by a third the size of the cultural gift scheme.

But I want to do something today that helps all businesses invest.

In 2012 I increased the Annual Investment Allowance ten-fold to £250,000.

This generous allowance was due to expire at the end of this year – and all the business groups have urged me to extend it.

So we will. But we’ll do more.

We’re going to double the Investment Allowance to £500,000, extend it to the end of 2015, and start it next month.

99.8% of businesses will get a 100% investment allowance.

Almost every business across Britain will pay no upfront tax when they invest in the future.

It costs £2 billion in the short term – so when we say: we’re going to get Britain investing; when we say we’re going to back growth around the country - we mean it.