§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer what is his estimate of the real increase in expenditure on central Government annual debt interest between 1991–92 and 1996–97; and to what this amount would equate approximately in terms of additional pence on the basic rate of income tax.
§ Mr. AitkenCentral Government debt interest payments are projected to increase from £16.2 billion in 1991—92 to £26.0 billion in 1996—97, in cash terms. In 1993—94 prices this represents an increase of £6.7 billion.
At 1996—97 income levels the yield in a full year from an increase of one penny in the basic rate of income tax is expected to be about £2 billion.