§ 60. Mr. J. H. Osbornasked the Secretary of State for Trade and Industry if he will tabulate details of the Government Research and Support Contracts to the estimated value of £4.4 million in the current year, indicating the main categories under which this expenditure is analysed, and how the percentage incurred in each has changed over the past five years.
317W
§ Mr. RidleyYes. The information requested is as follows:
EXPENDITURE ON INDUSTRIAL SUPPORT AND RESEARCH CONTRACTS The main categories, under which expenditure is analysed during the current year, to the estimated value of £4.4 million are as follows:— £ million (net) Estimate (Original) Estimate (Revised by Supplementaries) Industrial Support and Research Contracts with Industry 3.0 2.1 Research work by universities and other research bodies 1.0 0.9 Research and advisory work—grants and fees to outside organisations 0.4 0.1 4.4 3.1
The percentage of the total for each category in the past few* years is as follows:— 1967–68 1968–69 1969–70 1970–71 Outturn Outturn Outturn Estimate 70 67 64 68 30 33 36 29 — neglible neglible 3 Notes:
(1) * Comparable analyses are not available for 1966–67.
TABLE COMPARING THE NET PRESENT VALUE OF GRANTS AND OF THE TAX SAVINGS ARISING FROM THE CAPITAL ALLOWANCES FOR THE PRE- AND POST-27TH OCTOBER, 1970 INCENTIVE SYSTEMS Old New New plant and machinery eligible for investment grant (1) Ordinary 38.9–43.0(3) 32.8 Development Areas 51.9–55.0 36.8 Secondhand plant and machinery, or new plant and machinery both ineligible for investment grant and for 100 per cent. depreciation in development areas. Ordinary and Development Areas 30.5–34.2(3) 32.8 New plant and machinery ineligible for investment grant but now eligible for 100 per cent. depreciation in development areas (2) Ordinary 30.5–34.2(3) 32.8 Development Areas 30.5–34.2 36.8 Industrial buildings Ordinary 20.8 19.6 Intermediate and development areas (if ineligible for L.E.A. grant) 20.8 27.1 Intermediate area (attracting a full L.E.A. grant) 38.3 43.0 Intermediate area (attracting the full higher rate of L.E.A. grant) 45.3 49.4 Development area (attracting a full L.E.A. grant) 38.3 49.4 Development area (attracting the full higher rate of L.E.A. grant) 45.3 55.8 318W
NOTES A. Significant features of the new Incentive Measures not reflected in the Table The cut in Corporation tax from 45 to 42½ per cent. This will allow businesses to retain more of their profits. The cut is partially reflected in the Table, however, as a reduction in the apparent value (2) Figures have been adjusted for comparability as far as possible.