§ Mr. Leighton
To ask the Secretary of State for the Environment what is the effective tax subsidy for businesses locating at the enterprise zone of the Isle of Dogs, calculated as a percentage.
§ Mr. Trippier
Industrial and commercial property in enterprise zones is 100 per cent. exempt front local authority rates. The rate revenue thus forgone by the authorities is reimbursed by the Government: up to 31 March 1987 a total of £10.5 million had been paid to the local authorities in whose areas the Isle of Dogs enterprise zone lies.
In addition, there is an allowance, for corporation and income tax purposes, of 100 per cent. of capital 119W expenditure on the construction, extension or improvement of industrial and commercial buildings in an enterprise zone. Not all businesses that locate in enterprise zones are in a position to avail themselves of this benefit. Information about tax revenue forgone as a consequence is not kept for individual zones.