§ 22. Sir B. Rhys Williamsasked the Chancellor of the Exchequer what is his estimate of the cost to the Exchequer of granting free depreciation of capital expenditure for the 18 months from October, 1971, to April, 1973.
§ Mr. Maurice MacmillanThe cost to the Exchequer of increasing the rate of the first-year allowance to 100 per cent. for expenditure during a period of 18 months from 1st October, 1971, on those classes of plant and machinery which, following the announcement of 19th July, will qualify for the 80 per cent. rate is broadly estimated to be some £15 million in 1972–73, £65 million in 1973–74 and £45 million in 1974–75.
§ Sir B. Rhys WilliamsI thank the Chancellor of the Exchequer for having anticipated this Question in his Budget Statement last week. It is welcome to the House to be taken fully into the confidence of the Treasury before the Summer Recess. Could this be made an annual practice?
§ Mr. MacmillanAs usual, I am grateful for the originality as well as the point of my hon. Friend's comments.