§ The Chancellor of the Exchequer (Mr. James Callaghan)Next, business cars. The provision of business cars is, of course, in an entirely different category from what I have 253 been talking about. Nevertheless, I consider that the present capital allowances for business cars are unduly generous at the outset; with initial allowance of 30 per cent. and annual allowance of 25 per cent., over half the cost can be written off for tax purposes in the first year, except in the case of the more expensive cars. I see no need to continue this incentive to the purchase of business cars; and I therefore propose to withdraw the initial allowance for motor cars purchased afted today. Firms will, of course, continue to be entitled to the annual allowance.