§ Mr. BercowTo ask the Chancellor of the Exchequer on what basis he determines whether a tax credit is classed as public expenditure. [19808]
§ Mr. Andrew SmithThe Treasury's calculation of net taxes and social security contributions treats all tax credits as reductions in tax collected since working families and business tax credits appear as reductions in their tax bills.
The Treasury's calculation of public sector receipts, drawn from ONS' s national accounts, treats some tax credits as public expenditure, as explained in the ONS publication "National Accounts Concepts Sources and Methods", Doggett 1998, 21.69 to 21.71.