Rt Hon Lord Lilley

    Mr. Lilley : To ask the Chancellor of the Exchequer, what estimate he has made of the annual cost to businesses of tax rises announced in the last Budget. [92750]

    Dawn Primarolo: Budget 2002 introduced measures to modernise the corporate tax environment, providing longer-term stability and the best possible environment for investment. A series of targeted measures, such as tax credits for R&D and an exemption for capital gains on substantial shareholding, were introduced; as well as cutting the starting rate of corporation tax to zero and a reduction in the small companies rate to 19 per cent.