Cameron Q&A: Criticism on capital gains tax increase rebutted

___________

Download David Cameron's question and answer session with Yorkshire Post readers as a podcast Listen now

Or download to your MP3 player (right-click and choose Save Target As...)

___________

Jonathan Straight, chief executive of Leeds-based company Straight plc, said the increase from 18 to 28 per cent would make it difficult to incentivise managers at his recycling products group.

But the Prime Minister said the rise was necessary to close the gap between income and capital gains tax which would help recoup 1bn a year in lost revenues.

He added: "What we have done is fair, it helps entrepreneurs, it keeps capital gains tax well below income tax rate, it will close some of the evasion that 's happened, raise more money and I think it is the right reform."

The Prime Minister also faced questions about the burden of legislation.

David Grey, managing director of Sheffield-based OSL Group, said: "We have heard a lot about red tape for the last 25 years and nothing ever happens."

Mr Cameron said if any Minister wants to introduce a regulation, they have got to scrap one first.

Government departments will be challenged to reduce regulatory costs "to hold Ministers ' feet to the fire and get them to reduce regulation", he added.

And Lord Young, the former Tory enterprise Minister, is producing a report on health and safety, he said, which will lead to an approach based on common sense and discretion.

Kevin Parkin, of Sheffield engineering firm DavyMarkham, said skills shortages were a major problem for manufacturers in South Yorkshire and asked Mr Cameron how the Government could financially support business investment in apprentices.

He said Mr Parkin could apply for funding through the regional growth fund "because it is expanding the capacity of the private sector to create wealth and jobs".

Mr Cameron was asked how he could improve gender equality in the science, engineering and technology sectors.

"I can't change the gender balance in every other organisation, but I can demonstrate some leadership in politics," the PM said.

"When I took over the Conservative Party I recognised it badly under-represented women so I took action to change that."