HC Deb 24 March 1955 vol 538 c2263
38. Mr. Roy Jenkins

asked the Chancellor of the Exchequer his policy regarding increasing the rate of fixed investment in industry.

Mr. Maudling

My right hon. Friend's policy is to encourage fixed investment in industry by all means consistent with the Government's other economic objectives.

Mr. Jenkins

Will the hon. Gentleman, therefore, urge upon his right hon. Friend, in view of the positively discouraging trends of the increase in the Bank Rate, the desirability of increasing the investment allowance in the Budget?

Mr. Maudling

I am glad that the hon. Member recognises how effectively the allowance has been encouraging fixed investment, but I think that he tends to exaggerate the effect of short-term money rates on long-term fixed investment interest.