HC Deb 18 June 1998 vol 314 cc272-3W
Sir Sydney Chapman

To ask the Chancellor of the Exchequer what were the total payments received by the Treasury from the Post Office (a) in corporation tax and (b) under the external finance limit, in each of the last 10 years; and what estimate he has made of the amounts the Treasury will receive in this and the following two financial years. [44677]

Mr. Geoffrey Robinson

Payments received for corporation tax and contributions via the external financing limit (EFL) are shown in the table for each of the last 10 years. No Government estimates of future corporation tax revenue for individual bodies are made. The Post Office's EFL for 1998–99 is £-335 million, before any adjustment resulting from end-year flexibility. The Post Office's financial regime for the two following years is under discussion in the Comprehensive Spending Review and the Post Office review.

£ million
Contribution via EFL Contribution via corporation tax
1988–89 102 52
1989–90 102 42
1990–91 0 71
1991–92 74 69
1992–93 80 84
1993–94 182 81
1994–95 235 103
1995–96 245 150
1996–97 285 145
1997–98 1338 215
1Provisional outturn

Sir Sydney Chapman

To ask the Chancellor of the Exchequer if the Post Office operates under the same public sector borrowing requirement rules as its EU equivalents. [44678]

Mr. Geoffrey Robinson

As long as the Post Office remains in the public sector the Government will need to ensure that there are adequate controls on its borrowing in order to protect the taxpayer's interests. Control is currently exercised via the external financing limit rather than public sector net borrowing. A variety of different arrangements apply in other EU countries.

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