§ 2. Mr. McMasterasked the Chancellor of the Exchequer how much extra revenue he expects to receive in each of the next three financial years as a result of the increases in duties and taxes introduced in this year's Finance Bill.
§ The Chancellor of the Exchequer (Mr. James Callaghan)At current levels of income and expenditure the yield of the measures in the Finance Bill is estimated at£164 million in 1965–66, and about£220 million in 1966–67 and£250 million in 1967–68.
§ Mr. McMasterCan the right hon. Gentleman say what proportion of this extra revenue will be wasted in accordance with decisions taken by this Government since last October, and likely to be taken in the next few years, in ordering aircraft from abroad and ships from foreign yards?
§ Mr. CallaghanI am glad to say that a large part of the extra revenue has been devoted to an increase in the old-age pension. As to future orders of aircraft, they will not enter into either the balance of payments or budgetary considerations for some time to come.
§ Mr. Peter WalkerThe Chancellor will be aware that we have information as to the amount of Capital Gains Tax to be derived from individuals. Can the right hon. Gentleman give us the amount of tax which will be coming from companies via the medium of the Corporation Tax?
§ Mr. CallaghanNot at the moment, but the total yield in 1966–67 will be some£10 million and in 1967–68£25 million.
§ Mr. McMasterI wish to give notice that, in view of the unsatisfactory nature of the reply, I propose to raise the matter on the Adjournment at the earliest possible moment.