HC Deb 22 April 1977 vol 930 cc188-9W
Mr. Sillars

asked the Chancellor of the Exchequer if, from international sources available to him, he will indicate which countries in Western Europe have not introduced wage restraint policies in a statutory form in the last three years; and if he will show the rate of inflation in each country during that period.

Mr. Robert Sheldon

The table gives the inflation rates of those countries which have not introduced a statutory incomes policy in the last three years. It includes the United Kingdom because the statutory policy withdrawn during 1974 was introduced more than three years ago: the current policy is not statutory.

many fell into other categories; and what these were.

Mr. Joel Barnett

All companies incorporated in the United Kingdom are subject to the dividend controls with the exceptions described in Cmnd. 5444. There are about 3,000 companies subject to the statutory dividend limit. During 1976 the Treasury gave consent to 315 companies to increase their dividend above the limit. A number of other companies were told by the Treasury that consent would be given subject to certain conditions when they came to declare their dividends, but the consents did not fall in 1976. In addition the Treasury gave release from the controls to six companies on grounds that their operations were almost wholly overseas under provisions first introduced with the Treasury announcement of 20th October 1975.

Number of companies Percentage of aggregate increase
Grounds set out in Section III pf Cmnd. 5444, paras. 13–20
Takeover defence 4 1.5
Increases in share capital 27 5.2
Recoveries 166 42.2
No previous dividend declaration 3 0.1
Reconstructions etc. 6 1.1
Pre-1972 commitment 1 0.1
Other dividend forecasts, all associated with raising new money for investment 102 49.1
Minority shareholdings Nil
Other grounds not given as example in paras. 13–20 of Cmnd. 5444
Putting right errors caused by incorrect calculations by companies resulting from ACT changes 3 0.7
Relisting on the Stock Exchange 1
Change in the company's accounting period 1
Consent to declare but not to pay above the limit 1
315 100

The amount paid in dividend payments above the limit for the 315 companies was £32 .7 million. The names of companies which receive Treaury consents are published from time to time as they are given. Information on the total dividends paid by the 315 companies in 1976 is not readily available.

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