HC Deb 03 May 1966 vol 727 cc1459-60

The measures I have announced will, in total, increase the revenue by £386 million in 1966–67.

Mr. Raymond Gower (Barry)

rose——

Mr. Callaghan

We shall have five days to debate this.

In 1967–68 the increase will be about £285 million. The estimated surplus for this year on the Exchequer accounts will be increased from £661 million to £1,047 million, and the borrowing requirement will be reduced from £673 million to £287 million.

As far as the balance of payments is concerned, the announcements I have made today will have a cumulative effect. In a full year I hope the direct action on capital account and on invisibles expenditure will save up to £100 million a year; and adding on the continuing effects of last year's measures we shall save up to £200 million a year. This is, of course, without allowing for the indirect effect of the Selective Employment Tax on our current balance.

Against this total background the Government has been reviewing the temporary import charge, as the present legislation will expire in November next. Taking all the factors into account, including the direct attack we shall be making on the balance of payments, the Government have concluded that we shall be able to do without the import charge from November next. It will accordingly lapse at that time. Until then it will remain at the existing level of 10 per cent.

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