HC Deb 19 March 1968 vol 761 c297

Corporation Tax would be the most obvious method of dealing with an increase in profits. But an increase in profits—particularly from the somewhat depressed level at which they have been running in the past 18 months—is in many ways desirable. Without it it would be difficult to get the spurt in company investment which is essential to our future efficiency. Furthermore my predecessor announced in November that Corporation Tax on profits earned in the year now ending would be raised from 40 to 42½ per cent., an increase which we ex-pea to bring in an extra £57 million of revenue in 1968–69, and £98 million for a full year. I do not think it would be right to make a second change in the rate of Corporation Tax for this year.