Mr. Bob Brownasked the Chancellor of the Exchequer when he expects to make a statement on the effects of the replacement of investment grants by depreciation allowances on the economy of North-East England.
§ Mr. HigginsIt is too early to judge the effects of the changes in the system of investment incentives which were announced on 27th October, 1970. The reduction in the rate of corporation tax will be an important stimulus for the whole industry. The improved system of capital allowances which will concentrate assistance on profitable undertakings is designed to stimulate regional development more effectively than investment grants.