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Agricultural Building Allowance

I am happy to check that figure, but I do not have it in front of me. As part of the package, we introduced a new £50,000 annual investment allowance, which allows 95 per cent. of businesses to write off their expenditure on plant and machinery, other than cars, in the year in which it is made. Plant and machinery used on farms and in agricultural buildings will qualify for that allowance. It will provide a direct tax benefit to farmers for the tax year in which the money is spent. To ensure that the agriculture sector is able to benefit from the full range of tax assistance that is available following the withdrawal of the ABA, Her Majesty's Revenue and Customs has engaged proactively to help the agriculture industry to maximise its claims to plant and machinery capital allowances, and to the £50,000 annual investment allowance in particular. Pig farming is particularly equipment intensive, so HMRC is working on specialised guidance for the pig industry to explain what allowances are due and what types of expenditure qualify. HMRC wants to engage with the agriculture industry to ensure that it can make the most of the new arrangements. The guidance has been received positively by the National Farmers Union, to which the hon. Gentleman paid tribute, and the National Pig Association. HMRC is awaiting wider feedback before considering whether to expand the initiative, possibly by giving additional guidance to the agriculture sector more generally. That work and the package of spending and tax measures demonstrates the Government's continued support for the agriculture sector. That is further underlined by the new measures that were introduced in response to the downturn, such as increased funding for farm diversification, the development of micro-businesses, targeted support for the dairy sector and rural community broadband, which is of particular interest to me as the Minister responsible for Digital Britain. The real benefit of the business tax reform package will be felt through its impact on business investment. It will benefit all sectors of the economy and increase the investment that will be important for economic recovery and long-term growth. This year, we introduced a first-year allowance that doubles the rate of tax relief on new business investment in plant and machinery, which will support about £50 billion of investment when the need for extra help is at its greatest. I commend the Government's reforms, such as the simplification of capital allowances—including the ABA and IBA—the reduction of the main rate of corporation tax to the lowest ever level and the introduction of the annual investment allowance, which will provide the platform to encourage investment in the UK this year and for the future.