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Companies (Depreciation)

Volume 114: debated on Monday 6 April 1987

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asked the Chancellor of the Exchequer whether he will publish in the Official Report a table showing for each year since 1957 the amount set aside by industrial and commercial companies out of profits for depreciation and the amount spent on new plant and equipment.

[pursuant to his reply, 30 March 1987, c. 395]: Information, taken from the DTI's analysis of the published accounts of industrial and commercial companies in Great Britain, on the amounts set aside for depreciation is given in the table below. There are a number of breaks in the series; the analysis has only covered the whole industrial and commercial company sector since 1977. The accounts used in the analysis are the consolidated annual accounts of industrial and commercial company groups, which may include financial and overseas subsidiaries, and the accounts of independent companies registered in Great Britain. Great Britain subsidiaries of companies registered in Northern Ireland or overseas are also included. Fuller notes on coverage are given in the references.Figures of gross domestic fixed capital formation in plant and machinery by industrial and commercial companies are given in the table below. These figures, which are mainly based on inquiries by the Business Statistics Office, include the purchase of new and secondhand assets whereas sales of plant and machinery are deducted. The figures relate to assets located in the United Kingdom and are published annually in the CSO Blue Book—table 10.3 of the 1986 edition. Figures are not available for years prior to 1965.

Amounts set aside by industrial and commercial companies for depreciation
£ million
1957393
1958443
1959486
1960560
1961621
1962683
1963749
1964905
19651,012
19661,097
19671,124
19681,254
19691,323
19701,431
19711,591
19721,754
19731,992
19742,222
19752,513
19762,896
£ million
19773,217
New series:
19775,348
19786,525
19797,749
19808,967
198110,569
198210,600
Large Companies only:
19839,245
198411,755

1957–59:

Quoted companies only.

Source: Economic Trends No. 102 April 1962.

1960–64:

Quoted and unquoted. All public and some private companies with net assets of £500,000 or more or gross income of £50,000 or more in 1960.

Source: Business Monitor 2nd and 4th Issues.

1965–68:

Based on all public and some private companies with net assets of £500,000 or more or gross income of £50,000 or more in 1964.

Source: Business Monitor, Misc. 3, 2nd and 4th Issues.

1969–74:

Based on companies with net assets of £2 million or more or gross income of £200,000 or more in 1968.

Source: Business Monitor, Misc. Annual MA3, 11th Issue.

1975–77:

Based on net assets of £5 million or more or gross income of £500,000 or more in 1973.

Source: Business Monitor, MA3, 11th Issue.

1977–84:

Based on representative sample of all industrial and commercial companies. Figures for 1983–84 are preliminary estimates based on large companies only and include write-offs.

Source: Business Monitor, MA3, 12th and 17th Issues.

Gross Domestic Fixed Capital Formation in Plant and Machinery by Industrial and Commercial Companies

£ million

19651,313
19661,392
19671,397
19681,545
19691,688
19701,957
19712,013
19721,980
19732,315
19742,899
19753,525
19764,446
19775,502
19786,839
19798,094
19808,507
19818,174
19828,825
19839,458
198411,244
198514,611
198615,632