§ 14. Mr. David ShawTo ask the Chancellor of the Exchequer what would be the effect on the valuation of utility company securities in(a) the national balance sheet and (b) the corporate sector balance sheet if a windfall profits tax was introduced on utility company pre-tax profits at a rate of (i) 10 per cent. and (ii) 20 per cent.
§ Mr. NelsonAlthough it is not possible to estimate the precise impact, such a tax would hit significantly the value of utility companies, reduce investment and limit the scope for price reductions.