§ Mr. Boswell
To ask the Chancellor of the Exchequer what estimate he has made of the impact on tax revenues of a 1 per cent. increase in gross domestic product. 118W
§ Dawn Primarolo
The estimate reported in Treasury Occasional paper No. 4, "Public Finances and the Cycle", is that a one per cent. increase in output relative to trend increases tax revenues by over 1 per cent. a year later. This estimate is of course subject to a margin of error and the precise effect on tax revenues will depend in part on the composition of the increase in GDP.