Business Expansion Scheme (Hansard, 21 October 1992)

§ Mr. Battle
To ask the Chancellor of the Exchequer what was the(a) total amount invested in the business expansion scheme, (b) amount invested in private rented housing, (c) total cost of tax relief and (d) amount of tax relief in respect of investment in private rented housing for each year from 1987–88 to 1990–91; and for each year of the existence of the business expansion scheme what were the percentage and amounts of BES money invested in residential and assured tenancy schemes and associated revenue forgone by the Exchequer.

§ Mr. Dorrell
The business expansion scheme was extended to include investment in private rented housing in 1988–89. The latest estimates are as follows.
scheme, what was (a) the regional distribution of BES funds and the associated cost to the Exchequer, (b) the distribution of BES investments by two-digit standard industrial classification and (c) the average size of investments.

§ Mr. Dorrell
Information on the companies receiving investments through the business expansion scheme is published in chapter 7 of "Inland Revenue Statistics 1991". Further information that is readily available is as follows:
315W

1989–90 1990–91

Industry Number of companies Amount of investment Number of companies Amount of investment

£ million £ million

Manufacture of transport equipment 14 2 22 3

Instrument engineering 9 1 11 1

Food and drink industry 7 — 10 1

Textile, clothing, footwear industry 6 — 4 —

Manufacture of paper and paper products 32 2 26 2

Other manufacturing iustries 30 2 28 2

Construction 7 — 14 1

Wholesale distribution 46 3 48 3

Retail distibution 37 3 29 3

Distribution and repair of motor vehicles 13 1 7 1

Hotels and catering 51 8 34 5

Transport and storage services 24 10 18 2

Business, professional and technical services 70 6 66 8

Medical, educational and social services 33 4 32 4

Recreational, hairdressing and personal services 32 2 34 2

Private rented housing 483 162 446 283

Total 974 216 885 323

The average size of investment per company is as follows;

£ Thousand

1983–84 147

1984–85 183

1985–86 224

1986–87 221

1987–88 245

1988–89 167

1989–90¹ 222

1990–91¹ 365

¹ Provisional.

	1989–90	1990–91
Industry	Number of companies	Amount of investment	Number of companies	Amount of investment
		£ million		£ million
Manufacture of transport equipment	14	2	22	3
Instrument engineering	9	1	11	1
Food and drink industry	7	—	10	1
Textile, clothing, footwear industry	6	—	4	—
Manufacture of paper and paper products	32	2	26	2
Other manufacturing iustries	30	2	28	2
Construction	7	—	14	1
Wholesale distribution	46	3	48	3
Retail distibution	37	3	29	3
Distribution and repair of motor vehicles	13	1	7	1
Hotels and catering	51	8	34	5
Transport and storage services	24	10	18	2
Business, professional and technical services	70	6	66	8
Medical, educational and social services	33	4	32	4
Recreational, hairdressing and personal services	32	2	34	2
Private rented housing	483	162	446	283
Total	974	216	885	323

	£ Thousand
1983–84	147
1984–85	183
1985–86	224
1986–87	221
1987–88	245
1988–89	167
1989–90¹	222
1990–91¹	365
¹ Provisional.