And over one million manufacturing jobs lost. This was a vicious circle which trapped businesses and individuals. It was a traumatic period and one which must never be repeated. We have moved away from this 'stop go' economy. We also need a tax system which supports companies large and small.
Corporation tax is at a record low level.
We cut small company tax cut from 23 pence to 20 pence. And introduced a new starting rate of just 10 pence in the pound. In the new knowledge based economy we need a tax regime which reflects the nature of this new economy. That's why we are proposing to introduce a new tax relief for intellectual property and goodwill. And we are consulting on relieving tax when companies sell substantial shareholdings.