To ask the Chancellor of the Exchequer what his estimate is of the cost to the Exchequer of the industrial buildings allowance in each of the last five years; what percentage of such expenditure was accounted for by the construction of new hotels; and if he will make a statement. (242889)

The average annual value of IBA relief claimed by businesses was approximately £2.2 billion per annum between 2003 and 2005. The cost of this to the Exchequer is estimated to be approximately £600 million per annum.

Businesses with a primary activity operating hotels during this period accounted for, on average, an estimated £180 million per annum; with an estimated cost to the Exchequer of £45 million to £50 million per year.

Information for later years is not yet complete.