§ 27. Mr. Winnickasked the Chancellor of the Exchequer what is his estimate of the loss to the revenue in taxation caused by the present level of unemployment.
§ Mr. BiffenAs it would not be possible to reduce unemployment to zero, there is no point in attempting to estimate the cost in lost tax revenue associated with the present absolute level of unemployment. Nor is it possible to compute 333W the loss in tax revenue associated with any given increase in unemployment without making a large number of speculative assumptions concerning the characteristics of the newly unemployed. For an estimate of the tax loss for an individual under a specific set of assumptions I refer the hon. Member to the answer of January 18 given by my hon. and learned Friend the Minister of State to the hon. Member for South Ayrshire (Mr. Foulkes).—[Vol. 976, c. 893.]