§ Sir Trevor Skeetasked the Secretary of State for Energy if, further to his answer of 12 December 1986, Official Report, column 244, he will provide further information on the costs of the British Gas flotation.
§ Mr. Buchanan-SmithAs a result of a considerable reduction in the amount of commission expected to be paid to brokers and financial intermediaries, the cost of the sale to the Exchequer in 1986–87 is now expected to be approximately £10 million less than the figure given in my right hon. Friend's answer of 12 December at column244.
The projected cost to the Exchequer in the year of the flotation will therefore be £154 million. The corresponding spring supplementary estimate for these costs, which will be presented shortly, is for a total of £208 million. The difference represents transfers of funds within Government, principally stamp duty and VAT, which are not a cost to the Exchequer.