HC Deb 19 March 1969 vol 780 cc119-20W
Mr. Donnelly

asked the Secretary of State for Economic Affairs what estimate his Department has made of the total cost to public funds of inducements to industry to scheduled development areas in each of the years 1945–68, both in the form of special grants and in special investment allowances.

Mr. Urwin

The information required is given in the following table. Annual figures for the period 1945–60 are not readily available.

COST OF PREFERENTIAL GOVERNMENT ASSISTANCE TO INDUSTRY IN DEVELOPMENT AREAS AND DISTRICTS*
£m. (to the nearest £1m.)
1945–48† 11 Approximate annual averages in the periods given.
1949–58† 4
1958-March 1960† 14
1960–61‡ 12
1961–62‡ 33
1962–63‡ 24
1963–64‡ 17
1964–65§ 31
1965–66§ 75
1966–67§ 70
1967–68║ 156
1968–69║ 260 (estimated)
NOTES:
* These are figures of the total cost of special incentives to industry under regional development policies (insofar as these can be quantified) available in development areas (1945–60), development districts (1960–66) and development areas (since 1966), over and above measures available on a national basis.
† These figures cover principally expenditure on factories and on loans and grants to firms in the development areas designated under the Distribution of Industry Acts 1945–58.
‡ These figures cover principally assistance given in development districts under the Local Employment Acts of 1960 and 1963 in the form of Board of Trade factories, building grants, general purpose grants and loans, and (with effect from 1963) plant and machinery grants.
§ In addition to the incentives mentioned in Note ‡ above, these figures relate to the facility of free depreciation (introduced in the 1963 Finance Act); special assistance for industrial training; and the Highlands and Islands Development Board.
║ In addition to Local Employment Act assistance, industrial training assistance and the H.I.D. Board, these figures principally relate to the regional differential element of investment grants (which replaced free depreciation and plant and machinery grants) under the 1966 Industrial Development Act; regional employment premium; and the refund of selective employment tax to hotels in certain rural parts of development areas. The selective employment premium is also included in 1968–69, following its withdrawal from manufacturers outside development areas.