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31 July 1998
NEW AMBITIONS FOR BRITAIN: THE GOVERNMENT'S SECOND FINANCE BILL
Measures to promote a successful economy and a fairer society were enacted today when the Finance (No. 2) Bill received Royal Assent.
Financial Secretary Dawn Primarolo said today:
"This Act promotes fairness for all - business, employment, the family - and ensures that everyone has a fair chance to realise their ambitions. It is an Act for opportunity and stability."
The Finance Act implements many of the measures of the March Budget, including:
- a Code for Fiscal Stability with a statutory basis to ensure fiscal policy is open, transparent, accountable and set in Britain's long term interests;
- reducing rate of corporation tax to 30 per cent (and to 20 per cent for small companies) - the lowest rates ever;
- major reforms of capital gains tax, including a new long-term effective rate of 10 per cent on business assets, that will encourage long-term investment and growth of dynamic firms;
- measures to protect the environment;
- measures to ensure everyone pays their fair share of tax.
Together with:
- extending the New Deal to new groups excluded from the labour market;
- a major programme of tax and benefit reform to make work pay, including the new Working Families Tax Credit and restructuring National Insurance
Contributions; - new help for the costs of childcare and a significant boost to child benefit;
- as well as £1 billion of extra spending for health, education and transport for this year.
NOTES FOR EDITORS
The Finance Act will be available from the Stationery Office early next week.