Charles Walker questions the Chancellor about the effects of corporation tax on the competitiveness of the economy.

Mr. Walker: To ask the Chancellor of the Exchequer what assessment he has made of the effects of corporation tax on the competitiveness of the economy. [104894]

Dawn Primarolo: As announced in Budget 2006 and reiterated in the recent PBR, the Government are determined to maintain the overall competitiveness of the UK business tax system and maintain a constructive dialogue with business on international tax issues. The Government are committed to a business tax system which supports business competitiveness, in order to promote productivity and growth; and which operates fairly across businesses and sectors. The Government have undertaken extensive engagement with business. The recommendations of the Varney Review of HMRC links with large business, published 17 November, will improve the responsiveness of tax administration to the needs of business.

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