§ Mr. Lawsonasked the Chancellor of the Exchequer what is his best estimate of the total cost of debt interest in 1975–76, both in absolute terms, at outtturn prices and as a percentage of the total yield of income tax.
§ Mr. Joel BarnettMy current estimate of public sector debt interest payable this year is shown in the public expenditure White Paper. A later estimate, together with an estimate of income tax receipts during the year, will be included in the Financial Statement and Budget Report in April.
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§ Mr. Lawsonasked the Chancellor of the Exchequer what is his best estimate of the total cost of debt interest over the five year period 1975–76 to 1979–80 inclusive; by how much this exceeds what the total cost would have been had debt interest been held throughout at the level prevailing in 1974–75; and what will be the likely balance of payments cost of this excess.
§ Mr. Joel BarnettEstimates of debt interest at 1975–76 prices for all these years are shown in the public expenditure White Paper (Cmnd. 6393); see, for example, table 4.1. The effect of increases in debt interest on the balance of payments is uncertain; as stated in the White Paper, page 118, about one-seventh of total public sector debt interest has recently been paid abroad.