HC Deb 22 June 1965 vol 714 cc1460-1
27. Mr. Bence

asked the Chancellor of the Exchequer what annual increase has taken place in Government expenditure since 1951; and what increase in revenue from Purchase Tax, Income Tax, and company taxation has taken place over the same period.

Mr. Callaghan

Between 1951–52 and 1964–65 the average annual increase in Supply expenditure was£228 million, or 4.8 per cent.; the average annual increase in revenue from the taxes referred to by my hon. Friend was£143 million or 4.4 per cent. I will with permission circulate in the OFFICIAL REPORT a table giving more detailed information.

Mr. Bence

I thank my right hon. Friend for that reply, but does it not seem to indicate that in the past 13 years the increased revenue collected because of increased Government expenditure has been imposed more and more, relatively, on the lower income groups and on individuals rather than upon companies? Will he immediately convey to the people that the Finance Bill is a Measure to try to redress the balance and that the Opposition are trying to keep heavy taxation on individuals and to relieve companies?

Mr. Callaghan

We must keep a balance between securing a proper contribution by companies to the national Revenue and not impairing their commercial efficiency. But my hon. Friend will see from the table that whereas the percent-

£ million at prices of the year Percentage increase/decrease £ million at prices of the year Average percentage increase/decrease per year
1951–52 1964–65 Increase/decrease Average increase/decrease per year
Supply expenditure 3,513 6,480 2,967 84 228 4.8
Purchase tax 338 633 295 87 23 4.9
Income tax on persons and unincorporated enterprise (including surtax) 1,230 2,821 1,591 129 122 6.6
Company taxation* 898† 875† —23 -3 -2 -0.2
2,466 4,329 1,863 76 143 4.4
* Includes profits tax, excess profits tax and excess profits levy, together with income tax paid by companies.
† Includes tax paid by public corporations amounting to approximately£5 million in each year.
Back to
Forward to