§ Mr. David ShawTo ask the Chancellor of the Exchequer what would be the estimated cost of replacing the existing capital expenditure allowance rates by straight line rates of(a) year one-33⅓ per cent., year two-331 per cent., year three-331/3 per cent. and (b) year one-25 per cent., year two-25 per cent., year three-25 per cent., year four-25 per cent., if the levels of capital expenditure and business profits (1) stayed constant, (2) increased by 10 per cent. and (3) increased by 50 per cent.
§ Mr. Maude[holding answer 6 March 1992]: Maximum estimates of the annual Exchequer costs of the proposed rates for new capital expenditure on plant and machinery are: 414W
£ billions Assumed changed in capital expenditure and profits Straight line allowance at: Percentage 331/3 per cent. 25 per cent. 0 2.7 2.0 + 10 2.9 2.2 + 50 4.0 3.0 Estimates are very approximate because the precise costs would depend on the interaction of several factors.