§ Mr. Neubertasked the Chancellor of the Exchequer what is his latest estimate of the effect on revenue collection of the Civil Service dispute; and if he will make a statement.
§ Sir Geoffrey HoweThe latest information available indicates that about three quarters of the revenue due in April has been paid into the Exchequer accounts. An estimated £1¼ billion to £1½ billion of tax duties and national insurance contributions have been delayed, bringing the total backlog since the dispute started to between £2 and £2½ billion. As a result, the Government's borrowing requirement and the money supply are temporarily higher than they would otherwise have been. This will subsequently be corrected because the money owed to the Government will eventually be paid over. It presents no risk to the Government's economic strategy.