HC Deb 19 March 1968 vol 761 c268

Turning now to the prospects for the coming year and again using the new accounting basis, Consolidated Fund revenue from taxation and other receipts is estimated at £11,952 million. This is the estimate on the basis of existing tax rates, and takes no account of the proposals already announced to increase the rate of Corporation Tax to 42½ per cent. or the adjustments of tax allowances to be made in connection with the increases in family allowances. The increase of £775 million over the forecast outturn this year arises mainly on Inland Revenue account, but also allows for the general withdrawal of export rebates from 1st April next.

Total expenditure from the Consolidated Fund is estimated at £11,312 million, an increase of £434 million on the expected outturn this year. This figure includes the gross cost of the 7s. increase in family allowances from 9th April, but not that of the further increase of 3s. to be paid from 8th October. It also includes £31 million for the additional cost of agricultural support next year as a result of the recent Price Review; this figure is not included in the published Estimates of Supply expenditure.

On the basis of existing taxation, the surplus to be transferred to the National Loans Fund next year would thus be £640 million. Outgoings from the Fund next year for loans to nationalised industries, local authorities and other bodies are expected to amount to £1,744 million. In making provision for the loans to nationalised industries, I have taken into account the increase in prices of gas and of Post Office services which were announced yesterday. Details of these loans appear in the National Loans Fund White Paper which is being published today.

Net borrowing for the National Loans Fund next year before taxation changes is therefore estimated at £1,104 million.