§ Mr. JackTo ask the Chancellor of the Exchequer (1) how much revenue would be raised by restricting the payable tax credits on dividends paid by United Kingdom resident companies to pension funds and other exempt institutions to(a) 15 per cent., (b) 10 per cent. and (c) 0 per cent.; [1853]
(2) at current values of United Kingdom pensions fund holdings, what would be the effect on the value of those funds if payable tax credits on dividends paid by United Kingdom resident companies were reduced to (a) 15 per cent., (b) 10 per cent. and (c) 0 per cent.; and if he will make a statement on the ability of such funds under these circumstances to meet their obligations without receiving any additional contributions. [1854]
§ Dawn Primarolo[holding answer 2 June 1997]: Payments of tax credits issued with dividends of United Kingdom companies to pension funds and other exempt institutions and to individuals were about £5 billion in 1996–97. As the right hon. Member will be aware the consequences of any changes would depend on responses of the companies and institutions involved.