§ The Chancellor of the Exchequer (Mr. James Callaghan)I said at the beginning of my statement that I intended to get an improvement in the external capital account of £100 million a year. I estimate that the reserves will benefit by £50 million a year from the exchange control measures, apart from the 25 per cent. arrangement. The benefit from this is more difficult to estimate but it may well produce more than £50 million a year, making £100 million at least.
Furthermore, there will be a contribution to the balance of payments from the Corporation Tax. This is not easy to quantify because of the number of unknown factors, and the delayed impact —for which I shall myself be responsible—of some of the provisions. But it may well be that the tax reaching the Revenue from companies with overseas income will ultimately be increased by something of the order of £100 million a year. While it is not possible to put a figure on the balance of payments effects, I think that it is clear that it will bring a marked benefit to our external account.