HC Deb 23 June 1980 vol 987 c60W
Mr. Sainsbury

asked the Chancellor of the Exchequer what would be the cost in 1980–81, 1981–82, 1982–83 and 1983–84 of granting capital allowances for new retail buildings, at the 20 per cent. hotels rate, from 5 August.

Mr. Peter Rees

[pursuant to his reply, 20 June 1980, c. 697]: The latest available estimates for the cost of granting capital allowances for new shops at the hotel rates from 5 August 1980 is as follows:—

1980–1 Negligible
1981–2 £20 million
1982–3 £50 million
1983–4 £65 million
rising—at recent levels of expenditure—to about £250 million by the end of the century.

If other buildings such as retail warehouses were included, the cost would be higher. I regret that the available information is insufficient to enable it to be estimated.

The above estimate assumes that sufficient profiits are available to absorb the allowances in full.