§ 24. Mr. Kenneth Bakerasked the Chancellor of the Exchequer whether he will take steps to modify the scheme for investment incentives to allow the balance after the initial allowance of 60 per cent. to be written off on a straight line rather than reducing balance basis.
§ Mr. Maurice MacmillanNo: this would be contrary to my right hon. Friend's intention of simplifying capital allowances.
§ Mr. BakerCould I press the Minister to look at this again before the publication of the Finance Bill since industry will find it much easier to write off the balance of 40 per cent. in equal annual instalments rather than in indeterminable amounts over an indeterminable number of years?
§ Mr. MacmillanThe straight line method appears to be the simpler but it is more complicated in the end. Certainly 1599 only a small proportion of the traders actually elect for that system as opposed to the other. I will certainly look at what my hon. Friend says.