Mr. Alan WilliamsTo ask the Chancellor of the Exchequer what the estimated surplus will be at the end of 10 years on the Civil List, assuming an average price increase of 2.5 per cent. per annum and a yearly 3 per cent. rate of return on the invested surplus. [130316]
§ Mr. TimmsThe precise outcome would depend on the exact profiles of wage and price inflation, and of interest rates. If the assumptions stated applied uniformly across the period, and assuming that earnings growth is uniform and consistent with the 2.5 per cent. per annum increase in prices, the surplus at the end of 2010 can be calculated to be £8 million.