HC Deb 13 July 1976 vol 915 cc148-9W
Mr. Ian Lloyd

asked the Chancellor of the Exchequer whether he will publish in the Official Report a table showing what the net income and net percentage rate of return would be on an investment of £1,000, £10,000 and £100,000, respectively, yielding 20 per cent. gross before tax, made by a married man with two children earning £3,000, £5,000 and £10,000 per annum (gross before tax) respectively; and what the effective real rate of return, net after tax, would be, allowing for the retrospective annual rates of inflation existing in the 12 months up to June 1974, June 1975 and June 1976, the current rates of taxation on earned and investment income to apply in all cases.

Mr. Robert Sheldon,

pursuant to his reply [Official Report, 7th July 1976; Vol. 914, c. 594], gave the following information:

Assuming the children to be not over 11 years of age, and neither the taxpayer nor his wife aged 65 or over, the information is as shown in the table below:

million cuts in public expenditure, other than transfer payments.

Mr. Denzil Davies,

pursuant to his reply [Official Report, 12th July 1976], gave the following information:

Direct measures of the import savings produced by increases in taxation on tobacco, alcohol and petrol are not readily available. Much depends on the extent to which such tax increases produce changes in expenditure on other goods and services, as well as reductions in expenditure on the taxed goods in question. Since the import contents of particular expenditure categories differ markedly from one another, estimates of net import savings are necessarily extremely speculative.

Estimates derived from the latest input-output tables, which refer to 1972, suggest that imports of goods and services constitute, directly and indirectly, 9 per cent. of public authorities' current expenditure on goods and services, and 17 per cent. of public fixed investment. However, at the margin and depending on the particular items involved, the effects may be rather different. The ultimate extent of import saving also depends on the extent to which public expenditure cuts produce cuts in categories of private expenditure.