HC Deb 21 March 1957 vol 567 cc541-2
30. Mr. Hurd

asked the Chancellor of the Exchequer if he will give an estimate of the proportion of the farm subsidies and production grants which return to the Exchequer in taxation receipts.

Mr. Powell

Not enough is known about the distribution of farm subsidies and production grants betwen farmers in different income groups to enable an accurate estimate to be made; but the proportion is probably less than 10 per cent.

Mr. Hurd

Does not my hon. Friend agree that it would give the public a much truer picture of farm subsidies if the Chancellor could have a sample test taken of the balancing figure of tax paid against the subsidies? There is a great deal of misconception in the public mind. My own guess is that the balancing figure is nearly £40 million a year.

Mr. Powell

I think that that is unlikely to be true, because the total amount of tax on farmers' incomes is not much more than 10 per cent. of the amount of the subsidy.

Mr. Jay

If this argument is to be raised, would not it apply to many other forms of public expenditure, such as education?