HC Deb 02 May 1974 vol 872 cc1306-7
12. Mr. Douglas Henderson

asked the chancellor of the Exchequer if he will publish to the most recent convenient date details of the amount of corporation tax paid by companies which relates to income earned in Scotland.

Mr. Joel Barnett

No precise estimate is possible. Net receipts of corporation tax from companies whose registered office is in Scotland were £80 million in 1972–73; the tax on profits arising in Scotland would probably have been somewhat higher. The last time an attempt was made to provide an estimate of tax on profits arising in Scotland was for 1967–68, published by the Treasury in 1969 in "A Scottish Budget". Applying the 1967–68 proportion of estimated Scottish tax to United Kingdom tax to the 1972–73 receipt of corporation tax produces a figure of between £100 million and £110 million.

Mr. Henderson

Does the Minister accept that that is a somewhat confusing reply? Is he aware that in Scotland it causes considerable surprise and disappointment, and, indeed, incredulity that in these days, when the Government have so much computer capacity at their elbow, they cannot readily produce information of this kind? Will the hon. Gentleman undertake to make arrangements to produce these figures in future?

Mr. Joel Barnett

No. It may be incredible to the hon. Gentleman but it happens to be a difficult problem. As the hon. Gentleman—or even his hon. Friend the Member for Moray and Nairn (Mrs. Ewing)—may be aware, many companies outside Scotland have incomes arising in Scotland, and, equally, many companies in Scotland are assessed for corporation tax on profit that is earned in England.

Mr. Dalyell

Will my hon. Friend accept that his reply was confusing only to those who positively want to be confused?

Mr. Bruce-Gardyne

Instead of wasting the Treasury's time in meaningless statistical exercises such as that requested by the hon. Member for Aberdeenshire, East (Mr. Henderson), will the hon. Gentleman seek to assist Scotland's economy in one manner which would be most effective, namely, by helping to alleviate the discriminatory burdens of taxation on family companies, which are of such importance to the Scottish economy?

Mr. Barnett

I do not accept what the hon. Gentleman says about discrimination against family companies. We have had this argument on many occasions before. I intend, as do my right hon. and hon. Friends, to encourage the economies in Scotland, England, Ireland and Wales.