HC Deb 14 April 1960 vol 621 cc1448-9
5 and 6. Mr. Wingfield Digby

asked the Chancellor of the Exchequer (1) what percentage of the gross national product he estimates will be taken by central Government taxes on expenditure in the present financial year;

(2) what proportion of the estimated national income for 1960–61 will go in tax under his Budget proposals; and how this compares with 1959–60.

Mr. Barber

Precise figures for the financial year 1960–61 are not available, but it is not expected that the proportion of tax to gross national product will differ much from that for 1959. In the calendar year 1959, central Government taxes on expenditure amounted to about 12 per cent. of the gross national product at factor cost, and total central Government Revenue from taxes to about 26 per cent. of gross national product.

Mr. Digby

Would my hon. Friend agree that it is highly desirable in the long run, whatever the case may be this year, that the figure given in reply to my second Question should fall below 25 per cent., and is it not the fact that the figure which my hon. Friend has given me shows that it has increased by 1 per cent. this year? With regard to my Question No. 5. is it not a fact that these taxes really represent the Chancellor's contribution to keeping up prices, and, again, whatever the case may be this year, does he not agree that in future years it is desirable that these taxes should come down?

Mr. Barber

I certainly do not quarrel with the objective my hon. Friend has in mind, but I think it is fair to point out that in the four years from 1948 to 1951, central Government taxes were, on average, 33 per cent. of the gross national product and that in the last four years that figure of 33 per cent. has fallen to 26 per cent.