§ The Chancellor of the Exchequer (Mr. James Callaghan)
First, the rate. I have said before that it is not my intention to throw new burdens upon industry, but rather to redistribute the existing burden in a way more likely to meet the economic needs of the country. I have also said that a rate of 35 per cent. would bring in revenue equivalent to the combined yield of Income Tax at 8s. 3d. in the £ on undistributed profits and Profits Tax at 15 per cent. on total profits. That is the situation today. Obviously, I cannot foretell today what the budgetary requirement will be next year and, therefore, I cannot say now the amount of tax which industry, like individuals, will be called on to pay. What I can say is that as I see it today there is every likelihood that the rate will not exceed 40 per cent. I think that the Committee will recognise that I am not fixing the rate; but companies should be able to make their calculations with reasonable confidence in the light of these figures—[HON. MEMBERS: "Oh."]—with at least as much reasonable confidence as they have now when they do not know the rate of Income Tax for next year, either.