§ Mr. Ian Stewartasked the Chancellor of the Exchequer how the figure of £1,500 million, stated by the Financial Secretary as being the revenue cost of allowing losses arising from foreign currency borrowings as a charge against profits before tax, is calculated; on what information it is based; and over what period it applies.
§ Mr. Robert SheldonThis is our best estimate of the approximate cost, based on present exchange rates, using figures supplied by the Bank of England of borrowings in foreign currency supplemented by other information obtained by the Inland Revenue. The cost would be spread over a number of years, as loans were repaid and companies were able to make use of the relief.