HC Deb 04 March 1980 vol 980 cc101-2W
Mr. Marlow

asked the Secretary of State for the Home Department what gross income, in constant prices, the taxpayer has received from commercial radio, commercial television and commercial broadcasting as a whole for each of the last five years; and what is the expected income for each of the next five years, taking into account the impact of the fourth channel.

Mr. Brittan

It is not possible to give a combined figure on an exactly com-

Independent Television
1978–79 prices
Year ending 31 July Levy Estimated Corporation Tax Estimated Total
£ million £ million £ million
1974–75 34 14 48
1975–76 55 20 75
1976–77 63 22 85
1977–78 77 27 104
1978–79 67 24 91

Independent Local Radio
1978–79 prices
Year ending 30 September Estimated Corporation Tax
£ million
1974–75 0.1
1975–76 0.1
1976–77 1.3
1977–78 1.9
1978–79 2.9

The expected income from the levy on the independent television companies during the next five years is extremely difficult to predict, depending as it does in considerable measure on the economic state of the country in general, and upon the state of advertising in particular. The best estimate that can be made about levy payments is that—at 1979 prices—for 1979–80 these will be of the order of £45 million, and for 1980–81 of the order of £60 million. Beyond that date the impact of the fourth channel will probably result in a reduction in levy income of some £18 million in 1981–82; some £40 million in 1982–83; and some £15 million in 1983–84. No date has yet been fixed for the introduction of the levy on independent local radio; when introduced the initial annual income is expected to be parable basis for receipts to the Exchequer for tax and levy payments of commercial broadcasting as a whole since different financial years are involved as regards independent television and independent local radio. The following table sets out the position on benefits accruing to the Exchequer, and hence the taxpayer, in the form of corporation tax—on the basis of provisions shown in the companies' accounts—and levy payments, on a constant price basis. There may be other contributions by other forms of taxation. Levy payments are only made by independent television programme companies, no levy at present being charged to independent local radio companies.

about £1 million. It is not possible to anticipate the future income from corporation tax for either independent television or independent radio.