HC Deb 09 March 1982 vol 19 cc375-6W
Mr. Austin Mitchell

asked the Chancellor of the Exchequer what is the basis of the weighted average tariff for non-food manufactures in the table on page 44 of the second report of the Select Committee on the European Communities, House of Lords, on agricultural trade policy, Session 1981–82, and if he will publish in the

Mr. Ridley

At 1981–82 levels of unemployment, income, benefits, tax rates and so on, the estimated yield in a full year from taxing unemployment benefit, but not supplementary benefit to the unemployed, would be about £400 million. For the following increases in unemployment benefit rates above their levels in November 1981, the net yield to the Exchequer would be reduced in a full year by about:

  1. (a) £15 million (2 per cent. increase);
  2. (b) £40 million (5 per cent. increase); and
  3. (c) £60 million (7 per cent. increase)

These estimates take account of the extra spending involved in increasing the rates of unemployment benefit, less the additional yield of income tax, plus consequential savings in payments of supplementary benefit.