§ Mr. Emeryasked the Chancellor of the Exchequer (1) what rate of interest he estimates to be needed to produce a 2 per cent. real after-tax return on a security, assuming that real capital values are maintained out of post-tax interest and that the rate of inflation is 4.5 per cent., and assuming a rate of tax of 8s. 3d. in the £;
(2) what rate of interest he estimates to be needed to produce a 3 per cent. real after-tax return on a security, assuming that real capital values are maintained out of post-tax interest and that the rate of inflation is 4.5 per cent., and assuming a rate of tax of 8s. 3d. in the £;
(3) what rate of interest he estimates to be needed to produce a 0 per cent. real after-tax return on a security, assuming that real capital values are maintained out of post-tax interest and that the rate of inflation is 4.5 per cent., and assuming a rate of tax of 8s. 3d. in the £;
(4) what is the real net return on a security yielding 9 per cent. gross, on the basis that the rate of tax is 8s. 3d. in the £ and the maintenance of capital values occurs with inflation at 4.5 per cent.
§ Mr. Taverne:Approximately £7 13s. 2d. per cent.: £11 4s. 4d. per cent.: £12 19s. 11d. per cent. and 1 per cent. respectively.