§ Mr. Gowasked the Chancellor of the Exchequer how much of debt interest, during the current year, is expected to be paid without deduction of United Kingdom tax; what is his estimate of the total amount of tax during the current year; and what will be collected by the Inland Revenue on interest on the Government debt.
§ Mr. Joel BarnettThe interest on Government debt which is expect to be paid without deduction of United Kingdom tax 337W during the current year is of the order of £2,200 million.
The estimate of the total amount of tax receipts in the current year is given in the Financial Statement and Budget Report, 1976–77, Table 9. Tax deducted at source at the basic rate under Schedule C of the Income Taxes Act 1970 on the interest on Government debt is estimated to be about £650 million on interest of about £1,850 million in 1976–77. In addition, central Government debt interest on which tax has not been deducted at source may be charged under Case 3 of Schedule D and there is also additional liability to tax in respect of interest that is taxed at source; but the amounts of such tax are not separately identified.
§ Mr. Gowasked the Chancellor of the Exchequer what is his latest estimate of the amount of debt interest in 1977–78 (in the White Paper, Command Paper No. 6393 the estimate was £7,000 million); and what is his latest estimate of the percentage of public expenditure which the debt interest will comprise for the same year.
§ Mr. Joel BarnettThe latest estimates of debt interest, at 1976 Survey prices, will be published in the next Public Expenditure White Paper.
On the basis of the last White Paper—(Cmnd. 6393)—revalued and adjusted by the changes announced on 22nd July, debt interest is estimated to be 12.7 per cent. of total public expenditure in 1977–78.