§ Mr. Nicholas Winterton
To ask the Chancellor of the Exchequer if he will make a statement about the information he has concerning the impact upon capital investment by manufacturing industry of the changes in capital allowances which were announced in his autumn statement.
§ Mr. Dorrell
The aim of the enhanced capital allowances is to encourage businesses to bring forward investment in equipment and buildings. They formed part of a package intended to restore business confidence, which has been widely welcomed by industry. Whilst it is too early to see the effects on investment, recent surveys suggest that the package has contributed to the improvement in business confidence.