§ Mr. Denis MacShane
To ask the Chancellor of the Exchequer if he will introduce tax relief on the purchase of new public transport vehicles.
§ Mr. Dorrell
Expenditure on the purchase of new public transport vehicles is already entitled to tax writing down allowances of 25 per cent. per annum on a reducing balance basis. This allows almost 70 per cent. of the cost to be written off over the first three to four years of the vehicle's life.