§ Mrs. Wiseasked the Chancellor of the Exchequer what tax concessions or other assistance is made available to companies on account of energy-saving expenditure and is any concession or assistance available to householders who undertake expenditure for this purpose, namely, insulation.
§ Mr. Robert SheldonThere is a special 100 per cent. first-year tax allowance on the cost of adding thermal insulation to an existing industrial building. The usual industrial buildings allowances consisting of a 50 per cent. initial allowance and annual writing-down allowances of 4 per cent. of cost apply to thermal insulation incorporated in a new industrial building. In addition, the usual 100 per cent. first-year allowances for machinery and plant are available on the cost of installing energy-saving machinery and plant in industrial and commercial buildings. There is no tax allowance for energy-saving expenditure incurred by private householders.
As to other forms of assistance, loans to industry for energy-saving projects are
322WOfficial Report an updated version of the table which he produced on 29th April 1976, Official Report, columns 187 and 188, in answer to a Question from the hon. Member for Chester-le-Street (Mr. Radice).
§ Mr. Robert SheldonThe table is given below. As before, the countries are those whose currencies are used in the calculation of the value of IMF Special Drawing Rights. Line (a) gives percentage changes in indices of consumer prices—all goods and services—between December 1971 and July 1976—with exceptions indicated. Line (b) gives percentage changes between December 1971 and July 1976 for spot exchange rates against the pound sterling.
available at commercial rates through the Energy Saving Loan Scheme administered by the Department of Energy. Further proposals in the recent energy conservation White Paper (Cmd. 6575) are to extend the loan scheme to commerce; to assist organisations—industrial, commercial or public but not domestic—by providing a subsidy of up to 50 per cent. towards the cost of one-day visits by consultants and by providing the same organisations with a free quick advice service. In special development areas and development areas regional development grant is payable in respect of capital expenditure on new machinery and plant for energy conservation purposes on precisely the same terms as for other machinery and plant purchases. In addition, regional development grants are available for structural alterations to buildings in the assisted areas—including Intermediate areas—on premises used wholly or mainly for qualifying activities, and thermal insulation can qualify for grant aid under these rules.
The question of grants to householders is a matter for my right hon. Friend the Secretary of State for the Environment, who will be writing to my hon. Friend.