HC Deb 30 January 1984 vol 53 cc46-7W
Dr. Godman

asked the Chancellor of the Exchequer (1) if he will estimate the amount of tax revenue which would be lost as a result of the closure and consequential redundancies of (a) 1,400 and (b) 4,000 people at Scott Lithgow;

(2) if he will estimate the cost to the state of (a) 1,400 and (b) 4,000 redundancies at Scott Lithgow, in terms of unemployment, supplementary, and other benefits, over periods of 12 months and two years, respectively.

Mr. Moore

Estimates of this kind would require a number of hypothetical assumptions, e.g. about the family circumstances of the individuals, their eligibility for redundancy payments, the effect on unemployment. There can, therefore, be no single figure. But, for the economy as a whole, the average additional expenditure on benefits for each extra person unemployed is estimated at about £1,850 a year.