HC Deb 18 November 1976 vol 919 cc677-8W
Mr. Nott

asked the Chancellor of the Exchequer if he will publish estimates of the calculations lying behind the remarks of the Chief Secretary in his speech to the National Saving Committee on 4th November; and in particular if he will specify the basis of his calculations on council rents, prescription charges, school meal payments, hospital beds, pensions and short-term benefit, and the remaining £2½ billion of economies not secured by reductions in transfer payments.

Mr. Joel Barnett

No. I believe that on any reasonable interpretation my full speech makes it clear that I was commenting on suggestions for immediate but unspecified reductions in public expenditure totalling about £5,000 million a year. I gave examples of some of the possible consequences.

Mr. Denzil Davies

International comparisons of taxation may be significantly affected by the extent to which social security schemes are financed by contributions or general taxation. The relative incidence of central and local taxation may also vary. The following table shows estimates of direct and indirect taxes, and social security contributions, expressed as percentages of gross domestic product at factor cost in each country in 1974, the latest year for which figures are available. Direct taxes exclude those classified by the United Nations as taxes on capital.