The hon. Member for Oxford, East shakes his head, but major amounts of public money have been allocated for the revitalisation of British industries. We all hope that they will have the effect we intend.
The hon. Member for Northfield spoke about company car taxation and urged us to hit the perks rather than continue with the present regime. Again, that is a matter for my right hon. Friend's judgment in the Budget, but what the hon. Gentleman said will have been noted.
The hon. Member for Bradford, South spoke about capital allowances, which he said should have been raised to 100 per cent. He will be aware that, in the statement, tax incentives for investment included an increase in capital allowances in the first year to 40 per cent. for 12 months for most plant and machinery. The Chancellor spelt out very clearly why the Government retain the view that they have held for some years, that they do not wish, by reintroducing capital allowances, to introduce artificialities into the spending and investment decisions that people make. It is far better to keep down the overall burden of taxation and, in a more perfect market, enable people to take decisions about the allocation of capital and investment which will earn sufficient return and promote profitability.
Abolition of the car tax will have a very good stimulus upon the market. If the House does not accept my intentions in that regard, I refer to the statement of Mr. David Gent, director general of the Retail Motor Industry Federation, who said:
The motor industry and its customers can now look forward to a more certain future and an increasingly brighter 1993.
Sir Hal Miller, the chief executive of the Society of Motor Manufacturers and Traders Ltd., said:
we now look forward to leading the way out of recession.
Those are important leaders of a major industry for our country. They welcome the measure that was announced today. I am sure that it will have a beneficial impact, and I hope that the House will approve it.