Charge of Corporation Tax for Financial Year 1973.

Part of Clause 7 – in the House of Commons at 12:00 am on 21 May 1974.

Alert me about debates like this

Photo of Mr Edmund Dell Mr Edmund Dell , Birkenhead 12:00, 21 May 1974

We would certainly want to know where there were such problems, if companies could not be helped in the ordinary ways from the various market sources.

As to the effect on investment, I emphasise that we have left unaltered the investment incentives handed to us by the previous Government. I think particularly of the 100 per cent, depreciation which should be, given the availability of demand, a great encouragement to investment. By international standards it is a considerable encouragement.

I know that certain companies are making representations that the investment grant system should be restored. We do not want to mess around again with that system. We think it much better that there should be stability in the matter, that companies should be able to rely on the position. Nevertheless, with that belief goes the hope that they will take advantage of the investment incentives, and 100 per cent, depreciation represents a considerable investment incentive.

There are also the regional development grants, and there is the decision to continue the regional employment premium. The reduction in interest rates which we have brought about should have a beneficial effect on manufacturing investment. As to price control, we have given an assurance that when the code is reviewed we shall have in mind the likely effect on investment of any decisions. Finally, we have announced that if we find that the Budget judgment was in any serious way incorrect there will be a second Budget this year, when there will be an opportunity to correct the direction if that should be necessary.