§ Mr. Dalyellasked the Chancellor of the Exchequer what recent representations he has received from the British Building Employers' Federation regarding the implications for the level and trend of investment in the construction industry of the phasing out of capital allowances on machinery, plant and industrial buildings; and if he will make a statement.
§ Mr. MooreNone, but I am aware of the views of the Scottish Building Employers' Federation. The chief aims of the Government's business tax strategy are the stimulation of efficiency, enterprise and employment. These are being achieved through the creation of a more even-handed tax system based on significantly lower rates of corporation tax and allowances for depreciation which are more closely linked to useful asset life. As a result, investment decisions in future are less likely to be distorted by purely tax considerations.