Letter: For and against the manifesto for national recovery

Mr Richard P. Cook
Monday 26 October 1992 00:02 GMT
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Sir: While I would not wish to detract from your initiative in producing a programme for national recovery, I continue to be disappointed that tax incentives do not appear to feature in your thinking, as they have not been a part of government thinking, before, or after, the U-turn.

I have never understood the premise that recovery will be high- street-consumer led. Confidence must derive from the business sector, and a fundamental inducement to spending must rest with the reintroduction of 100 per cent capital allowances. The individual will not be persuaded to spend until he sees benefit reaching his pocket. The occasional drip of modest interest rate cuts does not have sufficient impact to induce high street spending.

Thus the impetus must fall upon the business sector, and to permit that community to update its capital equipment, with the aid of full capital allowances, will enable industry to modernise and at the same time stimulate the manufacturing and retail industries. Who knows, the banks may even be persuaded to participate by easing the cash-flow difficulties they have been creating.

Yours faithfully,

RICHARD P. COOK

Wadhurst, East Sussex

23 October

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