HM Treasury News Release 

129/98                                                 31 July 1998
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                  NEW AMBITIONS FOR BRITAIN: 
              THE GOVERNMENT'S SECOND FINANCE BILL


Measures to promote a successful economy and a fairer society
were enacted today when the Finance (No. 2) Bill received Royal
Assent.

Financial Secretary Dawn Primarolo said today:

     "This Act promotes fairness for all - business, employment,
     the family - and ensures that everyone has a fair chance to
     realise their ambitions. It is an Act for opportunity and
     stability."


The Finance Act implements many of the measures of the March
Budget, including:

          a Code for Fiscal Stability with a statutory basis to
          ensure fiscal policy is open, transparent, accountable
          and set in Britain's long term interests;

          reducing rate of corporation tax to 30 per cent (and
          to 20 per cent for small companies) - the lowest rates
          ever;

          major reforms of capital gains tax, including a new
          long-term effective rate of 10 per cent on business
          assets, that will encourage long-term investment and
          growth of dynamic firms;

          measures to protect the environment;

          measures to ensure everyone pays their fair share of
          tax.


Together with: 

          extending the New Deal to new groups excluded from the
          labour market;

          a major programme of tax and benefit reform to make
          work pay, including the new Working Families Tax
          Credit and restructuring National Insurance
          Contributions;

          new help for the costs of childcare and a significant
          boost to child benefit;
 
          as well as #1 billion of extra spending for health, 
          education and transport for this year.


NOTES FOR EDITORS

The Finance Act will be available from the Stationery Office
early next week.



# = pounds sterling