§ Mr. Robert Sheldonasked the Chancellor of the Exchequer what effect have the delays in payments of value-added tax and pay-as-you-earn, due to the Civil Service dispute, each had on the Revenue; and what has been the cost in interest charges on the extra borrowing.
§ Sir Geoffrey Howe[pursuant to his reply, 1 July 1981, c. 384]: It is estimated that up to the end of June, £4 billion to £4½ billion of net revenue has been delayed as a result of the Civil Service dispute. Inland Revenue taxes—mainly pay-as-you-earn—and national insurance receipts account for £3½ billion to £3¾ billion of the delayed revenue. Net Customs and Excise receipts, notably value-added tax, account for the rest.
This delay in receipts is estimated to have cost £70 million to £80 million in interest charges on the extra borrowing to the end of June.