Hotel Industry (Capital Allowances)

HC Deb 12 November 1981 vol 12 c128W

Mr. Sainsbury

asked the Chancellor of the Exchequer how much capital allowances for the hotel industry have cost in each year since the scheme started.

Mr. Ridley

On the assumption that all capital allowances claimed against hotel building can be absorbed by available profits, the cost is estimated to have risen from a negligible amount in 1978–79 to about £10 million in the current year. The actual cost will have been below this maximum figure but cannot be more precisely estimated.

Mr. Sainsbury

asked the Chancellor of the Exchequer how much capital allowances for the hotel industry are expected to cost in each of the next three years.

Mr. Ridley

On the assumption that all capital allowances claimed against hotel building can be absorbed by available profits, the cost is estimated at about £15 million in each of the next three years.