§ 1966 and 1967 Mr. Alisonasked the Chancellor of the Exchequer what study he has made of the extent to which the introduction of Corporation Tax in 1965 has led to an increase in company profit retentions in 193
§ Mr. Roy JenkinsThese matters are kept under continuous review. Special factors affected the periods for which figures are so far available and it is too early to draw any firm conclusions about the effect of Corporation Tax on company retentions.
§ Mr. AlisonIs the right hon. Gentleman aware that one of the reviews under which this is continually kept is the Board of Trade regular survey sample of companies and that the latest survey suggests that in the 12 months ending 1st October, 1967, the level of company retentions dropped by £75 million compared with 1965? Is this the rational aim of Corporation Tax and recent increases in the tax?
§ Mr. JenkinsNo, Sir, but special factors have operated in the last two years or so. While we will certainly continue to watch the position carefully, I would expect a different position to develop in future.