§ 23. Mr. Hanleyasked the Chancellor of the Exchequer what are the latest indications of company profitability for 1983–84; and what change he expects in the future.
§ Mr. Peter ReesCompany profitability is improving strongly. Trading profits of industrial and commercial companies were about a quarter higher in 1983 than in 1982. The Department of Trade and Industry provisionally estimates that the net pre-tax rate of return of non-North Sea industrial and commercial companies increased from 4.5 per cent. in 1982 to about 6 per cent. in 1983, the highest since 1978. I expect this improvement to continue.
§ 40. Mr. Formanasked the Chancellor of the Exchequer what representations he has received on the effect of his Budget measures on company profitability.
§ Mr. MooreI have received a number of representations welcoming the effect on company profitability of my Budget measures. The tax burden on industry over the next two years should be reduced by about £900 million, compared with an indexed base.