Jobs and investment are the bread and butter of our thriving economy, both locally and nationally, and it is therefore important that the Government and I work closely with businesses and employers to ensure we have the right policies to support them.
The Colchester economy, its jobs and its investment relies on the diverse range of local businesses we have here. Every Friday, I take the time to visit them to discover more about the fantastic range of companies we have in Colchester and learn about the challenges and opportunities facing them today. It is extremely important for me to keep in touch with the leaders of our local business community, who are some of the major employers of our town.
Our town is filled with fantastic businesses, big and small, and I have got to know the rise of many small, prosperous businesses in recent years. Small businesses are at the heart of our local economy and I am passionate about helping them thrive. I am proud of the Government's record in supporting small businesses and of the ambition of its Industrial Strategy to go further and back them to the hilt.
I believe the best way to support business is through a strong, stable economic climate that supports investment and growth. The decision taken to prioritise high value infrastructure and innovation will support businesses across the UK. This includes increasing investment in local roads and digital connectivity to help rebalance the economy.
Since 2010, the Government has put a business-led recovery at the heart of its plan, cutting Corporation Tax from 28 per cent to 19 per cent. I know how much businesses value certainty and stability, so I welcome that the UK will stick to the business tax roadmap to 2020. This will mean that Corporation Tax will fall to 17 per cent, by far the lowest in the G20, and a further business rates reduction package will be implemented. This will take 600,000 small firms out of the rates system altogether and, along with the increase of the Rural Rate Relief, mean lower bills for many thousands more.
Alongside this, the Government has committed to the biggest increase in R&D spending in 40 years, while UK export finance capacity will be doubled to make it easier for British businesses to export and reach new markets. A Charlie Mayfield's business-led initiative will also be funded to boost management skills across British businesses, and inject £500 million through the British Business Bank to improve small business finance.
On jobs and employment, this Government has a strong track record. The estimated employment rates for men and women aged between 16 and 64 years of age have generally been increasing ever since early 2012. Moreover, from February until April 2019, the estimated employment rate for all people was 76.1%, the joint-highest since comparable records began in 1971. This figure is at 72.0% for women, the highest since comparable records began in 1971. The UK unemployment rate was estimated at 3.8%; it has not been lower since October to December 1974. Earnings growth is at a record high. Earnings excluding bonuses grew at an annual pace of 3.8% in the May to July period, down slightly from the previous reading. Including bonuses, wages rose at an annual pace of 4% - the highest rate since mid-2008.*
On investment, the UK is a top destination for inward investment in Europe and remains a great investment destination worldwide. The UK's continued reputation as an attractive place to invest is helping to boost jobs and industry across our country. As such, I am glad that the Government is committed to attracting investment to the UK through its Foreign Direct Investment (FDI) strategy.
Since April 2010 there have been over 16,400 FDI projects in the UK, creating over 596,000 new British jobs. While this is welcome progress, there is more that can be done to attract investment to the UK.
As part of the Government's FDI strategy, work is underway to deliver a more targeted approach to promotion and investor support. I am encouraged by the work being done to identify High Potential Opportunities which are overlooked, misunderstood, or underestimated, and therefore not achieving their full potential. Targeted promotion of these opportunities will help to address the market failures which leave these places at a disadvantage, by presenting investors with a more complete picture of supply.
I am confident that the UK's commitment to strengthening the attractiveness of our business environment will continue to draw foreign investment, boosting wealth creation, producing more jobs, and protecting existing ones across the whole of the country.
I will continue to work hard on behalf of the people of Colchester to ensure we have a prosperous and thriving local economy, which will continue to attract investment and jobs. I also will continue to stand up for our local business community and offer my assistance whenever they need it.
* Source of statistics: The Office for National Statistics (ONS)
