Finance Bill

The Chief Secretary continually referred to the package of measures as a whole and the positive impact that that would have on many businesses, but that is cold comfort to the many farmers who, as we learned this evening, will be adversely affected by the changes. The Minister may talk about annual investment allowances that will be available for decisions in future, but the changes will affect decisions that have already been made. Businesses will not have the relief going forward. I understand the legal definitions of retrospectivity, but those decisions were made in anticipation of a certain tax environment. That has suddenly changed. What confidence can people have in any new allowance systems that are set up, after those under discussion have been changed without notice? The clause will reduce confidence in any future decisions that they may make. Research and development tax credits were mentioned, but these are the kind of businesses that would not consider using them. Questions have been raised about whether the availability of R and D tax credits affects the decision to invest, or whether that is investigated after the decision has been made. The debate has been worthwhile and given us the benefit of expertise, particularly in relation to tenant farming, which we did not explore in detail in Committee. It demonstrates a lack of understanding in the Treasury about how these issues will affect vulnerable groups. The contributions of the hon. Members for Stroud (Mr. Drew), for South-East Cambridgeshire (Mr. Paice) and for Hexham (Mr. Atkinson) highlighted the different ways in which the changes will be felt. They will have a devastating impact on businesses. I shall withdraw the amendment, but with a heavy heart. As I said at the outset, there is a need to review the allowances system. More work should be done to understand its impact on various sectors. I hope the Minister will initiate work to identify those that will be most adversely affected. The changes may be revenue-neutral as a whole, but for some sectors they will be a devastating blow. I beg to ask leave to withdraw the amendment. Amendment, by leave, withdrawn.