Capital Allowances (Regional Growth)

Chancellor of the Exchequer – in the House of Commons at 2:30 pm on 6th December 2011.

Alert me about debates like this

Photo of Tristram Hunt Tristram Hunt Labour, Stoke-on-Trent Central 2:30 pm, 6th December 2011

What recent assessment he has made of the effect of capital allowances on regional growth.

Photo of David Gauke David Gauke The Exchequer Secretary

Her Majesty’s Revenue and Customs does not have the data that are required to analyse capital allowances claims by region.

Photo of Tristram Hunt Tristram Hunt Labour, Stoke-on-Trent Central

I thank the Minister for another great non-answer. Those in the ceramics sector in Stoke-on-Trent and elsewhere are concerned about the fact that the Government’s package for energy-intensive industry does little to prevent further offshoring of jobs and businesses. Will the Government give careful consideration to the suggestion in the Energy Technology Criteria List that the granting of enhanced capital allowances should include the low-carbon equipment that is vital to the sustainable future of Britain’s world-class ceramics industry?

Photo of David Gauke David Gauke The Exchequer Secretary

I should have thought that the hon. Gentleman would welcome the measures announced last week for energy-intensive industries. We are also doing more to help the economy more broadly in the tax system. A couple of hours ago I happened to meet the chairman of one of the leading manufacturers in his industry, who was very supportive of the reduction in corporation tax from 28% to 23%.

Photo of Anne McIntosh Anne McIntosh Chair, Environment, Food and Rural Affairs Committee, Chair, Environment, Food and Rural Affairs Committee

York Handmade Brick Company is delighted by the announcement in last week’s Budget statement, and hopes to work closely with the Government to reduce emissions and ensure that we are on track to help energy-intensive industries such as brick companies.

Photo of David Gauke David Gauke The Exchequer Secretary

I am grateful for my hon. Friend’s comments. We do not want to export jobs in pursuit of policies that are not effective and do nothing for UK industry.