§ Mr. McKayasked the Chancellor of the Exchequer what was the direct loss of revenue in 1960 arising from the £404 million initial and investment allowance to companies.
§ Mr. BarberI assume that the hon. Member's figure is taken from the table on page 80 of the Blue Book onNational Income and Expenditure 1961. This figure relates to capital expenditure incurred in 1960 and would have a negligible effect on the tax yield in that year; the main cost will fall in the year 1961–62, and this is estimated to be about £145 million, leaving about £65 million to fall in later years.