Only a few days to go: We’re raising £25,000 to keep TheyWorkForYou running and make sure people across the UK can hold their elected representatives to account.

Donate to our crowdfunder

Clause 60 - Extension of capital allowances

Part of Finance (No. 2) Bill – in a Public Bill Committee at 11:00 am on 13th May 2014.

Alert me about debates like this

Photo of David Gauke David Gauke The Exchequer Secretary 11:00 am, 13th May 2014

I am grateful to my hon. Friend for his intervention. I know that he provides a strong voice for businesses in Redcar and does a great deal of work to ensure that his local economy is successful.

I was asked about the cost to the Exchequer, and can assure the Committee that the measure is not expected to have Exchequer impact. In terms of the impact assessment for ineligible businesses, it is too early to say. On the level of take-up and the effectiveness of the schemes in encouraging SMEs in the use of low-carbon transport, again, it is too early to say exactly as tax returns for 2012-13 have only just been submitted and have yet to be analysed by HMRC.

It is worth pointing out that we are seeing significant investment on ECA sites. For example, Vantec, a subsidiary of Nissan, recently opened a new logistics centre in the north-east enterprise zone. That £240 million investment is part of the local supply chain for Nissan and will create 230 jobs. Air Products is currently nearing completion on the construction of its first energy-from-waste facility in the Tees Valley enterprise zone, with which I know my hon. Friend will be familiar. It broke ground on a second plant in the enterprise zone in April this year. The first plant will secure 50 new jobs and employ 700 construction workers.

I hope that those points are helpful to the Committee and that the clause can stand part of the Bill.