§ Mr. Dellasked the Secretary of State for Trade and Industry (1) what is his estimate of the cost of providing, over and above the tax allowances now available, investment grants at the rate of 5 per cent. and 10 per cent. on the same range of investment goods other than ships as is specified in the Industrial Development Act, 1966, on the assumption that tax allowances are allowed net of grant;
245W(2) what is his estimate of the cost of providing, over and above the tax allowances now available, investment grants in development areas on the same range of investment goods other than ships as are specified in the Industrial Development Act 1966 and at rates of 5 per cent., 10 per cent. and 20 per cent., on the assumption that all tax allowances are allowed net of grant.
§ Mr. Anthony GrantAssuming investment expenditure other than on ships to be such that grant payments at the 20 per cent. standard rate and the 40 per cent. development area rate amounted to £550 million in a full financial year, total grant payments at flat rates of 5 per cent. and 10 per cent. on assets other than ships would be approximately £100 million and £200 million, respectively. On the same assumptions and assuming also the same proportion of total payments to development areas as in 1969–70, grant payments to those areas at 5 per cent., 10 per cent. and 20 per cent. would be approximately £32 million, £64 million and £128 million, respectively. It is impossible to estimate the extent to which these payments would be offset by increased tax liability since this depends on the location and circumstances of the grantee.