HC Deb 07 December 1983 vol 50 cc161-2W
Mr. Hanley

asked the Chancellor of the Exchequer why he included agricultural trading within the scope of the business expansion scheme; and if he will make a statement.

Mr. Moore

The business expansion scheme, and the business start-up scheme which it replaced, included qualifying farming companies in order to provide an incentive for new outside investment in new and expanding businesses. Tenant farmers, for example, may have no other readily available source of additional finance.

I am keeping a close watch on the way the scheme is developing following the initial, encouraging response from investors and business men. It would however be premature to draw conclusions from the limited information so far available.

Mr. Hanley

asked the Chancellor of the Exchequer if he is satisfied with the level of finance raised under the business expansion scheme going to companies requiring less than £100,000.

Mr. Moore

Claims for tax relief under the business expansion scheme cannot he made until after 1 January 1984, so it is too soon to have information about the amounts of finance raised and the distribution of investments among companies. But I have noted that a number of approved investment funds have indicated their willingness to consider companies requiring less than £100,000.