§ Mr. Pardoeasked the Chancellor of the Exchequer what was the increase in taxes on consumer expenditure for the latest period for which figures are available over the same period in 1977; and how much of this is due to the rise in consumer prices and how much is due to a real increase.
§ Mr. Denzil DaviesEstimates of taxes falling on consumers' expenditure are compiled and published annually. The latest estimate relates to 1976 and is shown, together with those for earlier 419W years in table 9.5 of "National Income and Expenditure, 1966–77".
An estimate of the real increase in taxes on consumer expenditure would require the accrual of taxes on expenditure in the second period to be estimated with reference to the volume of goods and services purchased by the personal sector in the second period expressed at the prices—and using the expenditure tax structure and rates—prevailing in the first period. Estimates of this kind are compiled in respect of the economy as a whole, primarily as a means of deriving estimates of GDP at constant factor cost; but to provide comparable estimates in respect of consumers' expenditure alone would require the development of methods for which resources are not available.