MP’s tax break call to help poorer areas

TAX breaks should be introduced to encourage private sector investment in poorer areas, a Yorkshire-born MP has suggested.

Neil O’Brien, a former adviser to both Theresa May and George Osborne, believes such incentives could assist the Northern Powerhouse policy agenda.

The Huddersfield-born Tory MP made the comments after the Government published the first Queen’s Speech of the new Parliament.

“As well as changing the Government’s growth and spending we should also consider what the tax system can do to help drive private sector inward investment into poorer places,” said Mr O’Brien, who represents the rural Leicestershire constituency of Harborough.

“That is the fundamental thing that will help to change the pattern of decline that we have seen in too many places over the years.

“Manufacturing needs twice as much capital investment per head as other types of economic activity, yet our tax system is probably less friendly to capital investment than anywhere else in the G20.

“If we can change that, outside the EU we will have much more freedom to enhance those capital allowances that will help manufacturing.”

Mr O’Brien added: “That, in turn, will help the regions where manufacturing is more dominant, which tend to be poorer areas.

“Finally, we must learn from countries such as Ireland, which has been aggressive in the way it has competed for inward investment around the world, and also ensured that a lot of high-wage, high-skilled employment has gone to poorer areas.

“People have been very clever in doing that in Ireland, and we should learn from them.”