§ Mr. Woofasked the Chancellor of the Exchequer (1) what has been the amount 853W of expenditure on investment incentives to industry, and regional development in the United Kingdom since 1970.
(2) if he will list the main investment incentives available to industry which have been introduced, and the dates when they became operative.
§ Mr. Joel BarnettIndustrial investment schemes are as follows:
In Great Britain under:
Industry Act 1972
Section 1—Regional development grants.Section 7—Selective assistance to the assisted areas (including Northern Ireland).Section 8—Selective assistance nationally (including Northern Ireland) mainly through the selective investment scheme (from 16th December 1976), 13 sectoral schemes introduced since 19th July 1973 and the accelerated projects scheme (in operation between 15th April 1975 and 6th August 1976).Local Employment Acts 1960 and 1972—for investment in the development areasIn addition investment grants were available under the Industrial Development Act 1966 until 1971 (when it was cancelled by the Investment and Building Act 1971).
In Northern Ireland, under:
Industries Development Acts (Northern Ireland) 1966 and 1971, amended by the Industries Development Order (Northern Ireland) 1976—for selective assistance.Industrial Investment (General Assistance) (Northern Ireland) Acts 1966–71 amended by Industries Development Order (Northern Ireland) 1976—for general capital grants.The system of tax incentives on industrial investment is as follows:
854WFirst-year allowances on machinery and plant, other than ordinary motor cars—100 per cent. throughout the United Kingdom on expenditure incurred since 22nd March 1972, at lower rates in certain areas since 27th October 1970.Initial allowances on capital expenditure incurred in the construction of industrial buildings—50 per cent. throughout the United Kingdom on expenditure incurred since 13th November 1974, at lower rates since 6th April 1970.100 per cent. first-year allowances on capital expenditure incurred in adding thermal insulation to an existing industrial building. from 13th November 1974.100 per cent. initial allowances on capital expenditure incurred on mining works in a development area or Northern Ireland, from 27th October 1970; 40 per cent. on such expenditure elsewhere, under allowances introduced in 1953.Gross public expenditure on the above investment schemes between 1st April 1970 and 30th September 1977 totalled £3,906 million, of which £2,666 million went to assist regional development. The tax incentives listed provide substantial benefit to industry. It is not practicable however to estimate the precise size of such benefits in aggregate.