§ Mr. Meacherasked the Chancellor of the Exchequer what has been the level of dividends and interest payments for each quarter since January 1960, and since June 1970; and what has been the percentage increase in dividend and interest
£ million Payments of dividends and interest, etc. by companies Dividends on ordinary shares Other* Central Government payments of debt interest Seasonally adjusted 1960—1st quarter … 237 134 208 2nd quarter … 235 135 211 3rd quarter … 242 145 215 4th quarter … 258 143 223 1961—1st quarter … 280 142 203 2nd quarter … 267 148 228 3rd quarter … 282 159 230 4th quarter … 279 166 232 1962—1st quarter … 261 163 217 2nd quarter … 272 166 218 3rd quarter … 297 157 214 4th quarter … 289 174 225 * Including interest on building society shares and deposits and other interest paid by bank, e.c, as well as debenture and loan interest. The percentage increases in dividend and interest payments by companies and by the central Government since the
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PERCENTAGE INCREASE IN DIVIDEND AND INTEREST PAYMENTS BY COMPANIES AND THE CENTRAL COMPARED WITH THE SECOND QUARTER OF 1970(BEFORE DEDUCTION OF INCOME TAX BASED ON SEASONALLY ADJUSTED DATA) Companies Dividends on ordinary shares Other* Central Government Total 1970—3rd quarter … … −10.1 2.2 −2.1 −3.3 4th quarter … … −5.3 5.7 3.7 1.3 1971—1st quarter … … −4.1 7.6 −2.5 0.8 2nd quarter … … −2.9 7.4 4.9 3.2 3rd quarter … … 1.4 8.3 8.9 6.1 4th quarter … … 1.2 9.6 13.2 7.7 1972—1st quarter … … 7.2 8.7 18.1 10.8 2nd quarter … … 1.20 13.9 33.1 18.5 3rd quarter … … −3.4(1) 24.6 12.3 11.6(1) 4th quarter … … −29.4(1) 37.0 27.0 11.3 (1) 1973—1st quarter … … 21.9(1) 5.10 26.4 34.3 (1) 2nd quarter … … 16.4(1) (2) 70.8 37.1 42.8 (1) (2) If dividends paid in the second quarter of 1973 are adjusted for tax credits to the personal sector, and taking the latest four quarters together to remove the distortions described in note (1) below, dividends on ordinary shares were 8.0 per cent. higher than in the second quarter of 1970—an increase of 3.1 per cent. at annual rate—and total dividend and interest payments by companies and the central Government were 27.4 per cent. higher—an increase of 10.2 per cent. at an annual rate. * See note above. (1) The timing of payments of dividends on ordinary shares was affected by delays made in order to take advantage of the transitional arrangements for changeover to the new system of corporation tax in April 1973. In consequence figures for the first two quarters of 1973 are distorted upwards and for the last two quarters of 1972 are distorted downwards. (2) With the introduction of the imputation system of corporation tax from 6th April 1973, companies paying dividends, instead of deducting income tax which had to be accounted for to the Inland Revenue and paying the dividend net, have been liable to pay advance corporation tax to the Inland Revenue in respect of the dividend paid. The figure relates to the actual dividends paid. payments at each quarter in comparison with their level at June 1970.
§ Mr. NottSeasonally adjusted estimates of quarterly payments of dividends and interest by companies and interest payments by central Government in the period 1963 to mid-1973 will be found in Tables 6 and 8 on pages xxv and xxxi of the October 1973 issue ofEconomic Trends. Corresponding figures for the period 1960 to 1962 are below :
second quarter of 1970 are given in the following table :