§ Mr. Eggarasked the Chancellor of the Exchequer what was the real rate of return on capital after tax in each year from 1970 to 1982 (a) for all companies, (b) for industry and commerce excluding oil and (c) for manufacturing companies only.
§ Mr. Wakeham[pursuant to his reply, 21 February 1983, c. 348]: There are no official estimates of post-tax rates of return. The Department of Industry publishes annual estimates of pre-tax rates of return for industrial and commercial companies, including and excluding North Sea oil companies, and for the manufacturing sector in its journal British Business. The latest estimates appeared in the issue for 17 September 1982 covering the period 1960 to 1981. Figures for the years 1970 to 1981 are as follows:
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PRE.TAX RATES OF RETURN AT CURRENT REPLACEMENT COST Industrial and commercial companies and manufacturing companies based on national accounts data. Per cent. All Industrial and Commercial Companies Industrial and Commercial Companies excluding North Sea Manufacturing Companies Year Gross (a) Net (b) Gross (a) Net (b) Gross (a) Net (b) 1970 8.7 8.7 8.7 8.7 7.5 7.5 1971 8.9 8.9 8.9 9.0 7.6 7.7 1972 9.1 9.0 9.1 9.3 7.9 8.1 1973 8.8 9.0 8.8 9.1 7.7 8.0 1974 6.6 5.9 6.7 6.1 5.1 4.3 1975 5.8 4.6 5.9 4.9 4.6 3.5 1976 6.1 4.8 5.9 4.9 4.9 3.9 1977 8.2 7.6 7.5 7.1 6.7 6.5 1978 8.7 8.2 8.0 7.7 6.9 6.8
All Industrial and Commercial Companies Industrial and Commercial Companies excluding North Sea Manufacturing Companies Year Gross (a) Net (b) Gross (a) Net (b) Gross (a) Net (b) 1979 7.7 6.9 8.3 5.3 5.1 4.3 1980 7.3 6.2 5.4 4.0 4.5 3.4 1981 7.3 6.2 4.9 3.2 3.6 2.1 Estimates for 1982 will not be available until the autumn. However, the improvement in profits during 1982—industrial and commercial company profits net of stock appreciation rose by 18 per cent. in the first three quarters of 1982 compared to a year earlier—should imply an improved real rate of return in 1982.