§ Mr. Wrigglesworth
asked the Chancellor of the Exchequer what is the estimated annual cost of granting capital allowances on new shop and warehouse construction similar to those given to hotels in the Finance Act 1978.
§ Mr. Peter Rees
The latest available estimate of the annual cost of granting capital allowances on new shop construction at the hotel rates—20 per cent. initial allowance—is about £70 million, rising—at recent levels of expenditure—toabout £250 million by the end of the century. If other buildings such as retail warehouses were included, the cost would be higher. I regret that the available information is insufficient to enable it to be estimated.
The above estimate assumes that sufficient profits are available to absorb the allowances in full.