§ Mr. Austin Mitchell
To ask the Chancellor of the Exchequer, pursuant to his answer of 16 February,Official Report, column 787, what is his estimate of amount of income earned on the £122 billion invested abroad in the latest two years for which an estimate is reasonably possible; how much of that income was remitted to the United Kingdom and how much United Kingdom tax was paid on (a) both gross earnings and (b) the net remittal; and what is his estimate of (i) the amount by which the income and wealth of the United Kingdom would have increased if the £122 billion had been invested in the United Kingdom and (ii) the amount of tax which would have been collected thereon.
§ Mr. Portillo
Estimates of the earnings by United Kingdom residents are published in table 5.2 of the Pink 667W Book. In the last two years the figures were £12,773 million in 1991 and £14,077 million in 1992. The amount of income remitted back to the United Kingdom is shown in the same table. Estimates of the United Kingdom taxes paid on income earned abroad, whether or not remitted to this country, are not available.
It is unclear what the level of United Kingdom income and wealth would be if there were no direct investment overseas or inward investment to the United Kingdom. But the implied interference with decisions made by companies and individuals suggests that they would both be considerably lower.