By setting a more realistic rate, and one that is closer to that adopted by companies themselves, investment decisions will be less dependent on their tax treatment. The Government believe that low tax rates on a broad base are best for the economy and we have taken the further step towards our goal of a 20 pence basic rate of income tax in Clause 54, which cuts the standard rate of income tax to 23 pence. I finish by mentioning a number of measures we are taking to help small businesses. The cut in income tax in Clause 54 will benefit unincorporated businesses, leaving businessmen and women more of their own money to spend or invest as they choose. The small companies' rate of corporation tax will also fall to 23 per cent.
Small businesses are crucial to the success of the economy.
We have listened to their concerns, and responded in this Bill by introducing relaxations to the venture capital trust and the enterprise investment schemes. We are also freezing business rates for small properties this year. This will be the last Finance Bill of this Parliament. It is fitting that it should be, because it crowns five years of achievement on the economy. Since this Government were re-elected in 1992, we have seen five years of uninterrupted growth, with unprecedentedly low rates of inflation.