And introduced cuts in capital gains tax to create the most favourable environment Britain has ever seen for encouraging entrepreneurs, rewarding risk-taking and promoting wider share ownership among employees. I believe that in the modern knowledge economy we also need an active industrial policy, to create an environment for world class business success. Helping business start-ups And developing Manufacturing Centres of Excellence Gone are the days when industrial policy meant planning, picking winners, pumping subsidies into firms. The new policy is about skills, about innovation and enterprise. Above all, it's about competition to create dynamic businesses.
Strong competition provides a spur for firms to innovate and increase productivity.
In contrast, anti-competitive behaviour is a burden on the economy and on businesses which want to grow by offering better value. That's why, in the UK, we introduced the new Competition Act earlier this year. It creates the strongest competition regime ever seen in this country. I don't want to be accused of plagiarism, but I will admit that we've copied the prohibition approach which has long been established in the United States. Based on the US experience I'm confident that this new regime will play an important part in improving the competitive position of businesses in Britain.