§ Mr. Boydenasked the Chancellor of the Exchequer, at current rates of taxation, what estimated additional revenue would accrue to the Exchequer if the gross national product increased by 1 per cent., 2 per cent., 3 per cent., 4 per cent., and 5 per cent., respectively.
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§ Mr. BarberIt is impossible to give any precise answer to this question as the additional revenue would depend on the way in which the increased gross national product was distributed on the one hand between different forms of consumers' expenditure, Government expenditure, investment and exports, and, on the other hand, between wages and salaries and profits. As a very rough indication, however, assuming that recent patterns of expenditure and income remained unchanged, each additional 1 per cent. of gross national product at current prices might yield an increase in Central Government revenue from tax of the order of £70 million.