§ Mr. Charles Irvingasked the Chancellor of the Exchequer what would be the estimated saving to the Exchequer of a 10 per cent. cut in all salaries within the public sector.
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§ Mr. Denzil DaviesThe estimated net saving in central Government would be of the order of £650 million in a full year, based on current year estimates. The figure comprises the net effect of (a) the direct saving on wages and salaries of the central Government—including Forces' pay—met from the Consolidated Fund and the saving in Exchequer grants to local authorities on the assumption that such grants were reduced pro rata to the savings in the current expenditure to local authorities, and (b) the reductions in direct tax receipts and in national insurance contributions paid by employers and employees. Secondary effects such as reductions in receipts from expenditure taxes have not been allowed for.