British companies succeeded and inward investment flowed. During the past four years, however, the Labour Government have begun to reverse those hard-won gains. The Red Book shows that the burden of taxation has risen by 3 per cent. My right hon. Friend describes the balance of payments problem that this country is encountering and the increased tax burden we face.
Friend is right.
Those are new figures. When the Government came to office, we were in fourth place in the competitiveness league. By 1999, we had fallen to eighth place and figures that have just been published show that we have fallen to ninth place. That is hardly surprising, not only because of the relentless increase in taxation and regulation under the Labour Government, but because other Governments are moving in the opposite direction. That is why we are losing competitiveness.