INVESTMENTS TO BE RESTRICTED

Press, Volume LXXXVII, Issue 26394, 12 April 1951, Page 7

INVESTMENTS TO BE RESTRICTED

Granting Of Credit For Speculation (Rqc. 830 p,m.) LONDON. April 10. “I have come to the conclusion that we must take steps to reduce the pressure of the Home demand on the engineering industries for plant and equipment for civilian purposes,” said the Chancellor of the Exchequer (Mr Hugh Gaitskell) in his Budget speech to-day. “Bank policy in granting credit is closely associated with. the problem. I am quite confident I can rely on them to maintain restraint in their credit policy, and to ensure that advances are not made for speculative purposes. “It is for us to take action now to restrain investment in W and later years. The initial allowances of 40 per cent, given for income tax and profit tax purposes on plant and machinery and 10 per cent, on indurtnal buildings and mine? and oil wells must be suspended from April 6, 1952. t am giving a ysars notice, Any

expenditure incurred after that date will continue to qualify for the ordinary annual depreciation allowances. There will ba no yield this year. In a full year the yield will be £170,000,000, but that will be precisely offset by the corresponding reduction m company savings. ’ ,