§ Mr. Strawasked the Chancellor of the Exchequer if he will provide an estimate of the additional interest payable on borrowing during the financial year 1981–82 as a result of the industrial action by civil servants in the revenue departments, including Customs and Excise, on the assumption that this action continues to the end of July 1981; and what percentage of the total paid to civil servants in wages and salaries in the year the estimated sum represents.
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§ Mr. BrittanOn the assumption that the strike action by civil servants in the revenue departments, including Customs and Excise, continues until the end of July 1981, the cost of additional interest on borrowing as a result of this action is estimated at £140 million by that date. Additional interest thereafter will depend on the rate of recovery after the strike ends, and it is too soon to provide an estimate of this additional cost in the remainder of the year. However, each £1 billion of tax delayed at current interest rates will cost approximately £10 million in extra interest per month of delay. The extra interest cost to the end of July represents 3½ per cent. of the total paid to non-industrial civil servants in salaries and wages in the year.